FinanceIntermediateArizona Exam

In Arizona, a lender who fails to comply with TRID disclosure requirements may face:

AOnly state licensing consequences administered by ADRE
BFederal penalties including statutory damages under TILA, and state consumer protection claimsCorrect
COnly the obligation to re-disclose the corrected information
DNo legal consequences whatsoever if the borrower was not financially harmed

Why Federal penalties including statutory damages under TILA, and state consumer protection claims Is Correct

Answer B: Federal penalties including statutory damages under TILA, and state consumer protection claims

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.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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