What are "trigger terms" in the context of mortgage advertising?

• A. Phrases that enhance a property's description
• B. Specific terms requiring additional disclosures
• C. General statements about loan availability
• D. Discouragement of specific loan types

Answer: (B)

In the context of mortgage advertising, "trigger terms" refer to specific phrases that indicate a loan product's specific details, such as the amount of the payment, the interest rate, or the terms of the loan. When these trigger terms are used in advertising, they necessitate additional disclosures to ensure that potential borrowers are provided with all necessary information to make an informed decision. This requirement is established under the Truth in Lending Act to promote transparency and protect consumers.

The incorrect options touch on other aspects of advertising or mortgage descriptions but do not accurately describe what trigger terms are. Enhancing property descriptions does not relate to the specific requirements for disclosures. General statements about loan availability lack the specificity needed to qualify as trigger terms. Lastly, discouragement of specific loan types does not align with the principle of trigger terms, which focuses exclusively on the need for clarity and precise information when certain details are mentioned in advertising materials.