Which set of items are the key disclosures under TILA?

• A. APR, Finance Charge, Amount Financed, Total of Payments, Payment Schedule
• B. Loan Estimate, Closing Disclosure
• C. Servicing Transfer Notice, Escrow Account Statement
• D. Bona Fide Compensation for Actual Services

Answer: (A)

When evaluating a loan, the most important disclosures under Truth in Lending Act are the ones that lay out the true cost and basic terms of credit in a concise way. The annual percentage rate (APR) captures the cost of credit on a yearly basis, combining interest and most fees. The finance charge is the total dollar amount you’ll pay to obtain the credit. The amount financed shows the actual loan amount available to you after certain prepaid charges are subtracted. The total of payments sums up all the payments you’ll make over the life of the loan. The payment schedule provides the timing and size of each payment. Together, these items let you compare the cost and timing of different loans at a glance.

The other options involve disclosures that arise in different contexts (such as TRID mortgage disclosures or servicing notices) or are unrelated to the core cost-and-terms disclosures, so they don’t represent the fundamental TILA disclosures.