TILA Mortgage Loan Officer Practice Test 2025 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 400

In the context of fixed-rate loans, if the APR redisclosure is inaccurate for more than what percentage, it must be redisclosed within three days?

1%

1/4%

1/8%

The requirement for redisclosure of the APR is rooted in the Truth in Lending Act (TILA) regulations. When the APR on a fixed-rate loan changes and deviates from the originally disclosed APR by more than 1/8%, lenders are required to redisclose the loan terms within three days. This is essential to ensure transparency for borrowers and to provide them with accurate information about the cost of credit they are receiving.

If the APR discrepancy exceeds this threshold, it indicates a significant change that could impact the borrower’s decision-making process. Therefore, this redisclosure requirement is in place to protect consumers by ensuring they are aware of any potential changes in the cost of their loan, fostering informed decisions regarding their financing options.

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