Final answer:
Under the Truth in Lending Act, mortgage advertisements must include the total loan cost, payment schedule, the annual percentage rate (APR), late payment charges, and information for government monitoring to prevent discrimination. Lenders must collect data on ethnicity and race to ensure fair lending practices are maintained.
Step-by-step explanation:
According to the Truth in Lending Act (TILA), a mortgage advertisement must include certain essential information beyond just the interest rates. This includes:
The total cost of the loan
Payment schedule
The annual percentage rate (APR), not just the interest rate
And any charges for late payment
Additionally, the TILA requires lenders to provide information for government monitoring purposes to ensure compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws. This encompasses the collection of data regarding the applicant's ethnicity and race, to prevent discrimination and to monitor geographical loan distribution as well as distribution by sex and race of loan applicants.
It's important for lenders to adhere to TILA requirements to promote transparency for consumers and uphold fair lending practices.