Tennessee Real Estate License Exam Practice Question
According to the Truth-in-Lending Act (Regulation Z), which of the following must be stated in the Truth-in-Lending disclosure?
Correct Answer: D
Rationale: The annual percentage rate (APR) is a crucial component of the Truth-in-Lending disclosure, as it reflects the true cost of borrowing over the life of a loan, making it essential for consumer understanding.
In contrast, attorney fees (A), cost of title policy (B), and broker's commission (C) are not mandated disclosures under Regulation Z. While these costs may be relevant to the overall transaction, they do not directly pertain to the terms of the loan itself, which is the primary focus of the Truth-in-Lending Act. Thus, only the APR is required to ensure transparency in lending practices.
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