Which of the following would be considered misleading under TILA advertising requirements?
Correct Answer
A) Advertising a teaser rate without mentioning it will adjust
Under TILA Section 226.24, advertisements must not be misleading. Advertising a low teaser rate for an ARM without clearly indicating it will adjust would be misleading to consumers.
Why This Is the Correct Answer
Under TILA Section 226.24, advertisements must not be misleading. Advertising a low teaser rate for an ARM without clearly indicating it will adjust would be misleading to consumers.
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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Which of the following loans would be exempt from Higher-Priced Mortgage Loan requirements under TILA?
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A mortgage broker arranges a loan and receives a 2% origination fee from the borrower and a 0.5% yield spread premium from the lender. Under RESPA Section 8, this arrangement is: