Finance

What is the purpose of the Truth in Lending Act (TILA)?

ARegulate appraisal fees

BRequire lenders to disclose the true cost of credit, including APR✓ Correct

CSet maximum interest rates on mortgages

DRequire buyers to obtain title insurance

Explanation

TILA requires lenders to disclose credit costs clearly, including the Annual Percentage Rate (APR), so borrowers can compare loan offers accurately.

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

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