An online mortgage advertisement displays 'No money down!' prominently. Under TILA advertising requirements, this statement:
Correct Answer
B) Requires disclosure of APR and payment terms
Under TILA Section 226.24, stating 'no money down' is a trigger term regarding down payment that requires additional disclosures including APR, payment schedule, and loan amount.
Why This Is the Correct Answer
Under TILA Section 226.24, stating 'no money down' is a trigger term regarding down payment that requires additional disclosures including APR, payment schedule, and loan amount.
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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An MLO notices that their company's adverse action notice template includes a checkbox for 'credit application incomplete' but does not provide space for specific reasons why the application was incomplete. This practice:
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A mortgage lender's privacy notice states that customer information may be shared with 'companies that perform marketing services on our behalf.' Six months later, the lender wants to share customer data with a new telemarketing firm for a different type of marketing campaign. Under GLBA, what must the lender do?