Federal Mortgage LawsQuestion 17 of 400
Under Regulation Z, if an advertisement for a mortgage states a specific interest rate (a triggering rate) or trigger term, it must also disclose:
a.The lender's total annual profit
b.The names of all loan officers
c.The borrower's credit score requirement
d.The annual percentage rate (APR), and if the rate may increase, that fact
Explanation
Regulation Z advertising rules require that when a trigger term (like a specific rate or payment amount) appears, the ad must also clearly state the APR and, for variable-rate loans, that the rate may increase after consummation. Profit figures, officer names, and credit score cutoffs are not required trigger-term disclosures. The rule prevents misleading rate advertising.
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