FinanceIntermediateDelaware Exam

What is the 'Truth in Lending Act' (TILA) and how does it protect Delaware borrowers?

AA state law requiring lenders to provide accurate property appraisals
BA federal law requiring lenders to disclose the annual percentage rate (APR), finance charges, and total cost of credit so borrowers can comparison shopCorrect
CSimply a narrow law requiring only lenders to disclose the truth specifically about physical property conditions, as generally applied statewide across Delaware
DA Delaware state law requiring lenders to offer fixed-rate mortgages

Why A federal law requiring lenders to disclose the annual percentage rate (APR), finance charges, and total cost of credit so borrowers can comparison shop Is Correct

Answer B: A federal law requiring lenders to disclose the annual percentage rate (APR), finance charges, and total cost of credit so borrowers can comparison shop

The Truth in Lending Act (TILA, Regulation Z) requires lenders to disclose the APR (the true cost of borrowing including fees), finance charges, total of all payments, and other key loan terms. The APR allows borrowers to compare loans from different lenders on a standardized basis.

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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