Rhode Island Mortgage Law Practice Test 2025 - Free Mortgage Law Practice Questions and Study Guide

The correct answer, which is that a borrower's credit score is not a requirement for a mortgage disclosure, is based on the regulations governing mortgage disclosures. Under laws such as the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), the required mortgage disclosures must include specific elements to ensure transparency in lending.

Loan terms and fees, monthly payment amounts, and loan purpose are all critical components that lenders are obligated to disclose to borrowers before finalizing a loan. These disclosures aim to offer borrowers a clear understanding of the financial obligations they are undertaking, including the total cost of the loan, payment schedules, and the intended use of the loan.

However, the borrower’s credit score is not mandated to be included in these disclosures. While a credit score certainly impacts loan offers and terms, lenders are not required to disclose this information in the initial mortgage disclosures. This distinction is important because it reflects the focus of disclosure requirements on financial terms rather than on the borrower's personal credit profile.