Ethics · 18% of the SAFE exammedium
Correct answer: Prohibited because it is misleading and triggers required disclosures by advertising a payment amount
Under Regulation Z's advertising provisions, when a mortgage advertisement includes a payment amount, it triggers a set of required disclosures including the amount or percentage of the down payment, repayment terms, and the APR. Advertising a specific monthly payment without providing this context is considered misleading and deceptive. Fine print can sometimes cure missing disclosures if it is clear and conspicuous, but omitting all material terms — loan amount, rate, term — while advertising a payment goes beyond what fine print can remedy. There is no 30-day teaser exemption under Regulation Z.
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