TILA & Advertising

Question 1

According to TILA, when advertising a loan, if a “Triggering Term” is used, what information must be included?

Answer 1

1. ) The amount or percentage of down payment.
2. ) Terms of repayment.
3. ) APR/Annual Percentage Rate.

Question 2

According to TILA, what is a “Triggering Term?”

Answer 2

A Triggering Term is a piece of information and number—that is not the APR—that can be used in advertising, requires further disclosure of information.
-For ex: Triggering Term: “5% loan available here,” would need to be: 5 % APR.

Question 3

According to TILA, what are 5 outlawed, misleading practices?

Answer 3

1. ) Stating that a loan product is endorsed/sponsored by the government, when it is not.
2. ) Stating that you as the MLO work under consumer’s current lender’s name, but you do not.
3. ) Claiming that by refinancing with you will eliminate debt, that is false.
4. ) Calling yourself a Mortgage “Counselor,” when you work for profit, nor a non-profit.
5. ) Not equally listing in each language of required disclosures on an ad that makes use of multi-language.