The Truth in Lending Act (TILA) requires lenders to disclose the:
Correct Answer
B) Annual Percentage Rate (APR) and total cost of credit
TILA requires lenders to disclose the APR, which reflects the true cost of borrowing including interest and certain fees. This allows borrowers to compare loan offers from different lenders on an equal basis.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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