CRAM ARCADE Open App

When an MLO advertises a specific mortgage interest rate in any medium, what additional information is generally required under Regulation Z's advertising rules?

Ethics · 18% of the SAFE exameasy

Show the answer and explanation

Correct answer: The APR, if the ad states a specific interest rate

Under Regulation Z (Truth in Lending Act), if a mortgage advertisement states a specific interest rate, it must also clearly disclose the Annual Percentage Rate (APR). The APR gives consumers a more complete picture of the loan's true cost including fees. The MLO's net worth, a full amortization schedule, or competitor rate comparisons are not required disclosure elements under Regulation Z advertising rules.

Drill 2,078 more questions like this, free

CRAM ARCADE has the full NMLS question bank, timed practice exams, focus drills on your weakest category, flashcards and spaced repetition. No credit card.

Start studying free