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#2270078 - 05/05/22 01:34 PM Trigger Terms requiring additional disclosures
southern palms Offline
Junior Member
Joined: Nov 2009
Posts: 46
An advertisement for Construction-to-perm loans, the advertisement of the short-term period of 12 month (12 term) - Is this a trigger term requiring additional disclosures? I believe it is by virtue "12 month." Is that correct?

Thank you for your help.

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#2270081 - 05/05/22 02:42 PM Re: Trigger Terms requiring additional disclosures southern palms
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
Without the ad context, it is hard to say.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2270082 - 05/05/22 02:47 PM Re: Trigger Terms requiring additional disclosures southern palms
southern palms Offline
Junior Member
Joined: Nov 2009
Posts: 46
Construction-To-Permanent (CP) LoanOur CP loan allows eligible borrowers to finance the construction of their home and the permanent mortgage all in a single transaction. We offer loan amounts up to $1.5 million and allow for a 12-month construction phase with interest-only payments before the loan is converted to a permanent mortgage when construction is completed.

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#2270084 - 05/05/22 03:32 PM Re: Trigger Terms requiring additional disclosures southern palms
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
iii. In an advertisement for credit secured by a dwelling, when one series of monthly payments will apply for a limited period of time followed by a series of higher monthly payments for the remaining term of the loan, the advertisement must state the number and time period of each series of payments, and the amounts of each of those payments.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2270088 - 05/05/22 03:56 PM Re: Trigger Terms requiring additional disclosures rlcarey
southern palms Offline
Junior Member
Joined: Nov 2009
Posts: 46
Thanks for your response!

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