Truth-in-Lending Act (TILA)| Questions and correct answers| New 2026

Truth-in-Lending Act (TILA)| Questions and correct answers| New 2026 The stated purpose of the Truth-in-Lending Act is to: A. Protect consumers from unethical mortgage lenders by requiring use of the Good Faith Estimate for all mortgage loans B. Assist consumers in comparing credit to avoid the uninformed use of credit C. Restrict the interest rates charged by lenders D. Prevent discrimination based on protected class distinctions B. Assist consumers in comparing credit to avoid the uninformed use of credit The Truth-in-Lending Act promotes the informed use of credit and protects borrowers from unethical lenders by requiring the clear and conspicuous disclosure of the terms and conditions of consumer loans offered. Which of the following advertisements contains a term that would require additional disclosures under the Truth-in-Lending Act? A. "Buy for less than rent!" B. "Interest rates as low as 5.65% APR!" C. "Own for $700 per month!" D. "No origination fee charged!" C. "Own for $700 per month!" Each of the following is a trigger term, requiring additional disclosures to the applicant: the amount or percentage of a down payment, the number of payments or term of the loan, the amount of any periodic payment, or the amount of any finance charge. Stating that a loan will have payments of $700 per month would require additional disclosures under the Truth-in-Lending Act. Which of the following would be considered a "dwelling" under the Truth-in-Lending Act? A. Residential apartment building B. Residential fiveplex C. Office building D. Residential condominium D. Residential condominium Under the Truth-in-Lending Act, a dwelling is defined as a residential structure that contains one to four units, whether or not it is attached to real property. A dwelling includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.