What are TILA trigger terms?

Asked by: Eleazar Goodwin  |  Last update: January 11, 2026
Score: 4.8/5 (9 votes)

The triggering terms include charges imposed under a non-home secured credit plan such as finance charges, late fees, over-the-limit fees, returned item fees, fees for obtaining a cash advance, fees to obtain additional or replacement cards, expedited card delivery fees, application and membership fees, annual and ...

What are trigger words in TILA?

A triggering term is a word or phrase that legally requires one or more disclosures when used in advertising. Triggering terms are defined by the Truth in Lending Act (TILA) and are designed to protect consumers from predatory lending practices.

What are examples of triggering terms?

Examples of Triggering Terms
  • The amount of a down payment expressed as a percentage or a dollar amount (example: "5% down" or "80% financing")
  • The amount of any payment expressed as a percentage or a dollar amount (example: "$15 per month" or "monthly payments of under $100")

What is a triggering term in real estate?

Definition: used in advertising, include the following – the amount or percentage of down payment, number of payments, period (term) of repayment, amount of any payment, and the amount of any finance charges. Pronunciation: \ˈtri-g(ə-)riŋ\

What is a trigger in financial terms?

Triggers in the context of investing are market or investment-related occurrences that may cause the system or the investor to take a certain action. An event (trigger condition) and an activity taken when the event occurs make up a basic trigger setup.

TILA Trigger Terms in Advertising (Module 2) | NMLS SAFE MLO Exam Study Series and Test Prep

40 related questions found

What are the triggering terms under TILA?

The triggering terms include charges imposed under a non-home secured credit plan such as finance charges, late fees, over-the-limit fees, returned item fees, fees for obtaining a cash advance, fees to obtain additional or replacement cards, expedited card delivery fees, application and membership fees, annual and ...

What is the difference between a trigger and a transaction?

A trigger is a special type of stored procedure that automatically runs when an event occurs in the database server. Transactional replication typically starts with a snapshot of the publication database objects and data.

Which of the following is not a triggering term?

Final answer: The only term that is not a 'trigger term' according to Regulation Z is the APR. Trigger terms in Regulation Z are those that could potentially cause misunderstanding about the cost of credit, including downpayment amount, number of payments or repayment period, and finance charge amount.

What are TILA disclosure requirements?

TILA disclosures include the number of payments, the monthly payment, late fees, whether a borrower can prepay the loan without penalty and other important terms. TILA disclosures is often provided as part of the loan contract, so the borrower may be given the entire contract for review when the TILA is requested.

Is assumable mortgage a triggering term?

In mortgage advertising, triggering terms influence consumer decisions by indicating specific financing details. The term 'Assumable Mortgage' does not provide specific conditions like the others do. Hence, it is not considered a triggering term compared to the others in the list.

What does not trigger full disclosure under TILA?

The following are examples which do not trigger the required disclosures: "No down payment" "18% Annual Percentage Rate" "Rate loans available here" "Easy monthly payments"

Which of the following is a trigger term mortgage?

The following are trigger terms: the amount or percentage of any down payment, the payment period, the monthly payment, and the amount of the finance charge.

What is the 3 7 3 rule for TILA?

Timing Requirements – The “3/7/3 Rule”

The initial Truth in Lending Statement must be delivered to the consumer within 3 business days of the receipt of the loan application by the lender. The TILA statement is presumed to be delivered to the consumer 3 business days after it is mailed.

What is the most common violation of TILA?

The more significant TILA violation for borrowers, especially those facing foreclosure, is the right of rescission. "Rescinding" the loan means the borrower can void the loan as if it was never made. The right of rescission can be a powerful weapon against foreclosure.

What does the TILA not cover?

TILA generally applies to consumer loans under $69,500. However, loans made for housing, such as mortgages, are excluded from this size limit. TILA does not generally apply to business loans, with some exceptions.

What is exempt from TILA?

The Truth in Lending Act (and Regulation Z) explains which transactions are exempt from the disclosure requirements, including: loans primarily for business, commercial, agricultural, or organizational purposes. federal student loans.

What are the rules under TILA?

It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans. For loans covered under TILA, you have a right of rescission, which allows you three days to reconsider your decision and back out of the loan process without losing any money.

Which of the following is not considered a trigger phrase under the TILA guidelines?

Which of the following is not considered a trigger phrase under the TILA guidelines? no down payment. a trigger term is an advertised term that requires additional disclosures.

What is a payment trigger?

Payment Trigger means the occurrence of a Change in Control during the term of this Agreement coincident with or followed at any time before the end of the 12th month immediately following the month in which the Change in Control occurred, by the termination of the Executive's employment with the Corporation or a ...

What is a trigger in banking?

A cash trigger is a condition that triggers an investor to make a trade or take a specific action, such as buying or selling a financial product such as a stock, option, futures contract, bond, or currency. Self-imposed cash triggers are most common among retail investors.

What is a buyer trigger?

Understanding Buying Triggers

A Trigger is an event that causes a buyer to have a clear need, which usually converts into a sense of purpose and urgency in their buying process. As an example in your own personal life, you might have had a vague interest in getting a new camera.

What is a trigger in layman's terms?

Someone's triggers are things that can cause them to have an extreme reaction of fear, upset, or anger, especially because they remember a traumatic experience. You need to understand what your triggers are, for example loud noises.