Finance
What is the primary purpose of the Truth in Lending Act (TILA) as it applies to California real estate transactions?
ATo set maximum interest rates on mortgage loans
BTo require lenders to disclose the Annual Percentage Rate (APR) and total loan costs to borrowers✓ Correct
CTo prohibit discrimination in mortgage lending
DTo regulate the secondary mortgage market
Explanation
TILA (Regulation Z) requires lenders to disclose the APR, finance charges, and other loan terms so borrowers can compare loan offers. It does not cap interest rates or regulate the secondary market.
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