Which of the following is NOT a TILA required disclosure?

The correct response identifies the "Notice of adverse action" as not being a required disclosure under the Truth in Lending Act (TILA). TILA's primary function is to ensure consumers are provided with clear and accurate information regarding the terms and costs associated with credit, particularly in real estate transactions.

The CHARM booklet, which stands for "Consumer Handbook on Adjustable Rate Mortgages," is mandated by TILA to inform borrowers about the nature of adjustable-rate mortgages, including potential risks and benefits. The right to rescind grants borrowers the ability to reconsider a credit transaction involving their principal residence, which is also a key component of TILA to protect consumers. Additionally, the Loan Estimate is a required disclosure that provides key details about a mortgage loan, including estimated monthly payments, other costs associated with the loan, and the fees charged.

In contrast, the notice of adverse action, while important for fair lending practices, falls under the Equal Credit Opportunity Act (ECOA) and its implementing regulations rather than TILA. This notice is required when a loan application is denied or credit is not extended on the terms requested, focusing on informing the borrower of the action taken rather than disclosing the loan’s terms. Understanding these distinctions helps clarify the specific roles of TILA