An advertisement for a 5/1 ARM states 'Starting rate 4.5%' and includes all required TILA disclosures. The ad also mentions the rate may adjust. This advertisement:
Correct Answer
B) Complies with TILA if all trigger term disclosures are included
Under TILA Section 226.24, ARM advertisements are permissible when they include required trigger term disclosures. The rate disclosure triggers additional requirements, and mentioning rate adjustments provides appropriate context.
Why This Is the Correct Answer
Under TILA Section 226.24, ARM advertisements are permissible when they include required trigger term disclosures. The rate disclosure triggers additional requirements, and mentioning rate adjustments provides appropriate context.
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?
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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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