If advertising a mortgage loan with a 6.99% APR under the TILA, what other information must be disclosed in the advertisement?

If advertising a mortgage loan with a 6.99% APR under the TILA, what other information must be disclosed in the advertisement?

• A. Monthly payments, down payment, and loan amount
• B. Monthly payments need to be disclosed in the advertisement
• C. Finance charges need to be disclosed in the advertisement
• D. Payment period of the loan needs to be disclosed in the advertisement

Answer: (A)

When a mortgage ad states a specific APR, it’s not enough to just publish the rate. Regulation Z requires disclosures that reveal the actual cost and terms of the loan, using trigger terms like the monthly payment, the down payment, or the loan amount to prevent misrepresentation. The best answer reflects what must accompany that APR: disclose the monthly payments, the down payment, and the loan amount. These figures give borrowers a concrete picture of what they would pay upfront and on a monthly basis, which, together with the APR, allows for an accurate comparison of offers. The other options are incomplete because they mention only a single element. Finance charges and other disclosures are covered by the broader regulations, but the specific extra information tied to the stated APR and the use of trigger terms includes those three figures: monthly payments, down payment, and loan amount.

When a mortgage ad states a specific APR, it’s not enough to just publish the rate. Regulation Z requires disclosures that reveal the actual cost and terms of the loan, using trigger terms like the monthly payment, the down payment, or the loan amount to prevent misrepresentation.

The best answer reflects what must accompany that APR: disclose the monthly payments, the down payment, and the loan amount. These figures give borrowers a concrete picture of what they would pay upfront and on a monthly basis, which, together with the APR, allows for an accurate comparison of offers.

The other options are incomplete because they mention only a single element. Finance charges and other disclosures are covered by the broader regulations, but the specific extra information tied to the stated APR and the use of trigger terms includes those three figures: monthly payments, down payment, and loan amount.