Final answer:
TILA requires the Loan Estimate to reflect costs, note rate, and total of payments, but not the Annual Percentage Rate (APR), which is provided on the Closing Disclosure. Option B is correct.
Step-by-step explanation:
The Truth in Lending Act (TILA) requires that borrowers receive clear and accurate information about their loan terms when securing a mortgage. According to TILA, a Loan Estimate must include various details about the loan, such as the costs associated with the loan, the note rate, and the total of payments. However, the Loan Estimate is not required by TILA to reflect the Annual Percentage Rate (APR).
Therefore, the item that is not required to be reflected on the Loan Estimate is (B) APR. This is because the APR is disclosed on another form called the Closing Disclosure, but not on the Loan Estimate itself. The Loan Estimate form is designed to give consumers an understanding of the costs of the loan, making it easier to compare different offers.