Finance
Regulation Z (Truth in Lending Act) requires that certain loan advertisements include a full disclosure of the loan terms if which of the following is advertised?
AThe property's square footage
BA specific interest rate or payment amount (a 'trigger term')✓ Correct
CThe broker's commission percentage
DThe property's market value
Explanation
Under Regulation Z, if an advertisement includes a 'trigger term' — such as a specific interest rate, payment amount, down payment, or loan amount — then the ad must also disclose all other major loan terms (full disclosure). Advertising only a low rate without full disclosure is a violation.
Related Iowa Finance Questions
- Iowa's Home Equity Conversion Mortgage (HECM) reverse mortgage program allows eligible Iowa homeowners to:
- What is a balloon mortgage as used in Iowa commercial and agricultural lending?
- What does LTV stand for in Iowa mortgage lending, and what does it measure?
- An Iowa home buyer's lender requires title insurance as a condition of the loan. Which policy does the lender require?
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants within three business days of application?
- An Iowa credit union offers a 15-year mortgage at 5% on a $175,000 loan. Using a payment factor of $7.91 per $1,000, what is the monthly P&I payment?
- Iowa's Iowa Finance Authority (IFA) provides assistance to first-time homebuyers through programs that include:
- An Iowa mortgage has an interest rate of 7.5% per year. What is the monthly rate used to calculate interest?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →