Finance
What is the purpose of the Truth-in-Lending Act (TILA)?
ATo regulate real estate agent commissions
BTo require lenders to disclose the Annual Percentage Rate (APR) and loan terms to borrowers✓ Correct
CTo mandate minimum down payment requirements for all mortgages
DTo establish maximum interest rates on mortgage loans
Explanation
TILA requires lenders to clearly disclose credit terms — including the APR, finance charges, and total payments — so consumers can make informed borrowing decisions and compare loan offers.
Related Arkansas Finance Questions
- Which type of mortgage features payments that remain constant but are applied entirely to principal (no interest)?
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