Finance
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 shop✓ Correct
CA law requiring lenders to tell borrowers the truth about property conditions
DA Delaware state law requiring lenders to offer fixed-rate mortgages
Explanation
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.
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