What does the term “triggering terms” in advertising refer to?

The term “triggering terms” in advertising specifically refers to certain specific loan features that, when mentioned in advertisements, require additional disclosures to be provided to consumers. This is derived from the Truth in Lending Act (TILA), which was designed to ensure that consumers are fully aware of the costs associated with a loan when they are being marketed to. When an advertisement includes these triggering terms, it necessitates a more comprehensive explanation of the loan’s terms and conditions, such as the interest rate, required down payment, monthly payments, or the terms of repayment.

Using of triggering terms helps to provide a level of transparency in advertising loans, ensuring that potential borrowers receive adequate information to make informed decisions about borrowing. This is crucial in protecting consumers from potentially misleading or incomplete information related to mortgage products. The other options do not align with the regulatory requirements surrounding real estate lending advertising, which is fundamentally focused on consumer disclosures and transparency.