Finance
In Arizona, a lender who fails to comply with TRID disclosure requirements may face:
AOnly state licensing consequences
BFederal penalties including statutory damages under TILA, and state consumer protection claims✓ Correct
COnly the obligation to re-disclose
DNo consequences if the borrower was not harmed
Explanation
TRID violations can expose lenders to federal statutory damages under TILA, state consumer protection claims, potential rescission rights for the borrower, and regulatory penalties from federal banking regulators.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
State-Specific Concepts
Disclosure Requirements
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