If a mortgage professional advertises a loan product at "7.25% APR for the first six months," what additional disclosure does TILA require?

If a mortgage professional advertises a loan product at "7.25% APR for the first six months," what additional disclosure does TILA require?

• A. The finance charges for the loan
• B. The APR in effect after the introductory rate expires
• C. The monthly payment for the loan
• D. No other information is required

Answer: (D)

When a mortgage professional advertises a loan product with an introductory rate, such as "7.25% APR for the first six months," the Truth in Lending Act (TILA) requires that certain disclosures be made, but not all additional disclosures are required when the information provided is clear and straightforward. In the case of this advertisement, if it specifies the terms of the initial rate without promoting misleading or deceptive practices, TILA may not necessitate further disclosures beyond what has already been stated, assuming the advertisement complies with regulatory standards regarding clarity and communication of the terms. The specific additional disclosures that would typically be required under TILA, such as the finance charges or the APR after the introductory period, are not necessary if the advertisement is presenting a simple and direct promotional message that is not misleading. Therefore, in this context, stating that no other information is required is aligned with TILA's purpose of ensuring that consumers are not overwhelmed with unnecessary details when they are already informed of the critical introductory rate for a limited time.

When a mortgage professional advertises a loan product with an introductory rate, such as "7.25% APR for the first six months," the Truth in Lending Act (TILA) requires that certain disclosures be made, but not all additional disclosures are required when the information provided is clear and straightforward. In the case of this advertisement, if it specifies the terms of the initial rate without promoting misleading or deceptive practices, TILA may not necessitate further disclosures beyond what has already been stated, assuming the advertisement complies with regulatory standards regarding clarity and communication of the terms.

The specific additional disclosures that would typically be required under TILA, such as the finance charges or the APR after the introductory period, are not necessary if the advertisement is presenting a simple and direct promotional message that is not misleading. Therefore, in this context, stating that no other information is required is aligned with TILA's purpose of ensuring that consumers are not overwhelmed with unnecessary details when they are already informed of the critical introductory rate for a limited time.