Under Regulation Z, which of the following advertising terms would trigger additional required disclosures in a mortgage advertisement?
Correct Answer
C) 2.5% APR
Under Regulation Z (Truth in Lending Act), specific credit terms like APR, payment amounts, or loan terms are 'triggering terms' that require additional disclosures including the APR, payment terms, and other loan details.
Why This Is the Correct Answer
Under Regulation Z (Truth in Lending Act), specific credit terms like APR, payment amounts, or loan terms are 'triggering terms' that require additional disclosures including the APR, payment terms, and other loan details.
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Previous Question
An MLO discovers that a borrower's income documentation appears to be falsified after the loan has been submitted to underwriting but before closing. The MLO's manager instructs them to proceed with the loan because 'the investor will catch it if there's really a problem.' What should the MLO do?
Next Question
An investor purchases a property using a straw buyer, then immediately sells it to another straw buyer at an inflated price, with plans to rent it back to the original seller. The original seller will live in the property. This scheme primarily constitutes: