A mortgage broker's radio ad states 'Get approved today! Finance charges starting at just $45,000 over the life of your loan.' What TILA disclosure is triggered by this statement?
Correct Answer
B) The annual percentage rate must be disclosed
Under TILA Regulation Z Section 1026.24(d)(1), stating a finance charge amount ('$45,000 over the life of your loan') is a triggering term that requires disclosure of the annual percentage rate using that term. Finance charges are one of the specific triggering terms that mandate APR disclosure in advertisements.
Why This Is the Correct Answer
Under TILA Regulation Z Section 1026.24(d)(1), stating a finance charge amount ('$45,000 over the life of your loan') is a triggering term that requires disclosure of the annual percentage rate using that term. Finance charges are one of the specific triggering terms that mandate APR disclosure in advertisements.
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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