A mortgage advertisement states 'Get a 30-year fixed rate mortgage for just $1,850 per month, APR 4.25%.' What additional disclosure is still required under TILA?
Correct Answer
C) The number of payments at the stated amount
Under TILA Regulation Z Section 1026.24(d)(2), when an advertisement contains triggering terms like a payment amount, it must disclose: (1) the APR (already provided), (2) the payment amount (already provided), and (3) the number of payments. The advertisement is missing the number of payments disclosure.
Why This Is the Correct Answer
Under TILA Regulation Z Section 1026.24(d)(2), when an advertisement contains triggering terms like a payment amount, it must disclose: (1) the APR (already provided), (2) the payment amount (already provided), and (3) the number of payments. The advertisement is missing the number of payments disclosure.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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