A mortgage broker's newspaper ad states '$200,000 loan amount available.' Which TILA requirement applies?
Correct Answer
B) Must disclose APR, payment terms, and down payment if required
Under TILA Section 226.24(d), stating a specific loan amount is a trigger term requiring disclosure of APR, payment schedule, and down payment amount if one is required.
Why This Is the Correct Answer
Under TILA Section 226.24(d), stating a specific loan amount is a trigger term requiring disclosure of APR, payment schedule, and down payment amount if one is required.
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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A manufactured home loan secured by both the home and land has a 35-year term, 41% DTI ratio, and no risky features. The borrower has excellent credit. What QM category might this loan qualify for?