Finance
What is the 'Truth in Lending Act' (TILA) and how does it protect Nevada borrowers?
AA Nevada state law requiring honest advertising of real estate
BA federal law requiring lenders to disclose the annual percentage rate (APR), total finance charges, and key loan terms in a standardized format so borrowers can compare loan offers✓ Correct
CA law requiring all Nevada mortgage lenders to be state-chartered
DA federal law prohibiting predatory lending exclusively in Nevada
Explanation
TILA (Regulation Z) requires lenders to disclose the APR (which includes interest rate plus fees), total finance charges, amount financed, and total of payments. The APR allows apples-to-apples comparison of loan offers. TILA also requires the Loan Estimate (within 3 days of application) and the Closing Disclosure (3 days before closing). In Nevada's mortgage market, TILA protects borrowers from hidden costs and allows informed comparison shopping.
Related Nevada Finance Questions
- What is 'negative amortization' and why is it risky in Nevada real estate?
- What is the 'Community Reinvestment Act' (CRA) and how does it affect Nevada lending?
- What is a 'home equity line of credit' (HELOC) and how might a Nevada homeowner use it?
- What does the term 'amortization' mean in real estate finance?
- What is a 'hard money loan' in Nevada real estate and when is it typically used?
- What is the Nevada Housing Division's Home is Possible program?
- What is a commercial real estate mortgage compared to a residential mortgage in Nevada?
- A balloon mortgage requires:
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →