Finance
What is the purpose of the Truth in Lending Act (TILA) as it applies to a Rhode Island mortgage borrower?
ATo set the maximum interest rate a lender may charge
BTo require lenders to disclose the annual percentage rate (APR) and other key loan terms so borrowers can compare offers✓ Correct
CTo guarantee the borrower a loan at a specific rate
DTo insure the lender against borrower default
Explanation
TILA requires lenders to clearly disclose the cost of credit, including the APR, finance charges, and loan terms, enabling borrowers to make informed comparisons between loan offers.
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