Required by the Truth-in-Lending Act, the annual percentage rate (APR) is reported by the lender to the borrower on virtually all U.S. home mortgage loans. The APR accounts for all of the following EXCEPT:
A) All finance charges in connection with the loan, such as discount points, origination fees, and underwriting fees.
B) All compensation to the originating brokers if one was used by the borrower.
C) Any prepayment of principal to be made on the loan.
D) Premiums for required forms of insurance

Question

Quizplus · Accepted Answer

The annual percentage rate (APR) accounts for all finance charges in connection with the loan, such as discount points, origination fees, and underwriting fees, as well as premiums for required forms of insurance. However, it does not account for any prepayment of principal to be made on the loan.

Required by the Truth-In-Lending Act, the Annual Percentage Rate (APR)