FinanceIntermediateDelaware Exam
Under the Truth in Lending Act (TILA), what must lenders disclose to borrowers?
AThe exact monthly payment only
BThe annual percentage rate (APR) and all finance chargesCorrect
CThe appraised value of the property
DThe title search results
Why The annual percentage rate (APR) and all finance charges Is Correct
Answer B: The annual percentage rate (APR) and all finance charges
TILA (Regulation Z) requires lenders to disclose the Annual Percentage Rate (APR), total finance charges, amount financed, and total of payments, enabling borrowers to compare loan costs.
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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