Michigan Real Estate Exam Practice Question
According to the Truth-in-Lending Act Regulations 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 element in the Truth-in-Lending disclosure as it provides borrowers with a clear understanding of the total cost of borrowing, including interest and fees, expressed as an annualized rate. This transparency allows consumers to make informed decisions about loans.
In contrast, attorney fees (A) and broker's commission (C) are not mandated disclosures under this regulation, as they can vary widely and are not essential for understanding loan terms. The out of office policy (B) is irrelevant to loan disclosures and does not pertain to the financial terms required by the Truth-in-Lending Act.
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