What must be disclosed in the Truth in Lending Act?

Which of the following would trigger additional disclosure requirements under the Truth in Lending Act TILA in an advertisement?

Clear and Conspicuous Disclosures: Any required disclosures must be presented clearly and conspicuously on all advertisements. Trigger Terms: Certain terms, such as the amount of a down payment, monthly payment, or interest rate, trigger additional disclosure requirements.

What are six major areas of information that may be included on your credit report?

Although each of the credit bureaus—Experian, Equifax and TransUnion—format and report your information differently, all credit reports can contain basically the same categories of information. These categories are: identifying information, credit accounts, credit inquiries, bankruptcy public records, and collections.

What are the 6 TRID requirements?

The "TRID" rule requires lenders to provide a Loan Estimate once a borrower provides these six key pieces of information: the borrower's name, income, Social Security number, property address, estimated property value, and the desired loan amount, triggering specific disclosure timelines for the lender.
 

What are two types of disclosure?

There are three types of disclosure.

• Authorized disclosure.
• Willful unauthorized disclosure.
• Inadvertent unauthorized disclosure.

What disclosures must be given within 3 business days of receiving an application?

Closing Disclosure (CD): The Closing Disclosure must be provided to borrowers at least three business days before closing. This document summarizes the final loan terms, closing costs, and details of the mortgage transaction.

Under what conditions is a truth in lending statement required?

A Truth in Lending (TIL) statement is required for most consumer credit, including mortgages, auto loans, credit cards, and personal loans, whenever a finance charge is involved or credit is extended, ensuring lenders provide clear disclosures of costs (like APR, finance charges, total payments) before the contract is signed, allowing consumers to compare offers and make informed decisions. It applies to both closed-end (installment) and open-end (revolving) credit, with specific timing requirements for delivery, such as before loan consummation or account opening.
 

What is an example of the Truth in Lending Act?

The TILA mandates the kind of information lenders must disclose regarding their loans or other services. For instance, applicants for an adjustable-rate mortgage (ARM) must receive information on how payments might increase under different interest scenarios. The act also bans certain practices.

Which of the following statements regarding the truth in the lending Act of 1968 is most accurate?

The Truth in Lending Act (TILA) of 1968 requires lenders to disclose the annual percentage rate (APR) for loans, making it easier for consumers to understand the costs of borrowing. Therefore, the most accurate statement is B: It mandates that the annual percentage rate (APR) must be disclosed to the consumer.

What are legally required disclosures?

Legal disclosure requirements are mandatory transparency rules across various fields (law, finance, real estate, employment) compelling parties to reveal relevant information, preventing fraud, ensuring fairness, and building trust, covering everything from initial lawsuit facts and financial dealings to property defects and investment risks, with failure to disclose often leading to legal penalties. These requirements vary by context, like early sharing of evidence in litigation (Rule 26), revealing property issues in sales, or providing complete financial details in family law, all aimed at informed decision-making. 

What 6 things credit card companies must disclose?

Total of payments, Payment schedule, Prepayment/late payment penalties, If applicable to the transaction: (1) Total sales cost, (2) Demand feature, (3) Security interest, (4) Insurance, (5) Required deposit, and (6) Reference to contract.

What loans don't require TILA disclosure?

TILA requirements do not apply to the following types of loans or credit: Credit extended primarily for business, agricultural, or commercial purposes. Credit extended to an entity rather than a natural person, with limited exceptions for certain trusts.

What are the main disclosure requirements?

Full Disclosure Requirements

• Audited financial statements.
• Employed accounting policies and changes in the accounting policies.
• Non-monetary transactions.
• Material losses.
• Asset retirement obligations.
• Details and reasons for goodwill impairment.
• Existing litigation.

What are the 4 P's of disclosure?

For more, listen to Season 1's episode covering the 4 P's of a proper disclosure: prominence, presentation, placement, and proximity.

What are the five-five forms of disclosure?

The five common ways that children convey their abuse:

• help-seeking behaviour.
• telling without words.
• partially telling.
• telling others.
• telling in detail.

What disclosures are required by Trid?

The TILA-RESPA Integrated Disclosure (TRID) rule requires two forms: the Loan Estimate and the Closing Disclosure. The Loan Estimate form is a three-page document that provides an estimate of the loan terms, projected payments, and closing costs.

What does TRID not apply to?

The rule does NOT apply to Home Equity Line of Credit transactions reverse mortgages mortgages secured by a mobile home or other dwelling that is not attached to real property. Also, TRID rules do NOT apply to loans made by a person or business that makes 5 or fewer mortgages in a calendar year.

Which of the following does not require the transfer disclosure statement?

There are specific situations where the TDS is not required, including: Court-ordered transfers, such as those involving probate, bankruptcy, or eminent domain. Transfers by a fiduciary administering a decedent's estate, guardianship, or trust.

What cannot be removed from your credit report?

You generally can't remove accurate negative information like late payments (for 7 years) or bankruptcies (10 years) unless it's a mistake or identity theft; only false or outdated information can be removed, not true negative history or your basic personal details (name, DOB). Beware of "credit repair" scams promising to erase true, current negative data, as it's illegal for them to do so. 

What credit score do you need for a $400,000 house?

To buy a $400k house, you generally need a credit score of at least 620 for a conventional loan, but you can get approved with lower scores (around 500-580) for FHA loans with a larger down payment, while excellent scores (740+) secure better rates. The required score depends more on your loan type (Conventional, FHA, VA, USDA) and lender than the home's price, with higher scores leading to lower interest rates. 

What are the 4 C's of credit score?

There are four main pillars that a creditor will use to evaluate a borrower's creditworthiness. Character, capacity, collateral and capital are all key items you should review prior to submitting a loan request. However, many individuals may not understand the meaning behind these 4 building blocks.