Is advertising a 30-year fixed-rate mortgage with an APR of 6.35% in compliance with Regulation Z?

Advertising a 30-year fixed-rate mortgage with an APR of 6.35% complies with Regulation Z because it meets the requirements set forth by the Truth-in-Lending Act (TILA). TILA aims to promote the informed use of consumer credit by requiring clear disclosure of key terms and costs associated with mortgage loans.

In this context, stating the Annual Percentage Rate (APR) is crucial, as it helps borrowers understand the true cost of the loan over its term, inclusive of interest and certain fees. As long as the advertisement accurately reflects the terms of the mortgage and does not mislead consumers, it satisfies the necessary conditions outlined in Regulation Z. This means that basic information, like the APR, can be provided without needing to disclose every detail in advertising, assuming no misleading practices are involved.

When it comes to compliance, other aspects, such as clarity of the advertisement and whether it includes other essential disclosures (e.g., loan features, terms, conditions if applicable), are also relevant. However, since the question focuses narrowly on the advertisement mentioning the APR, and as long as it does so truthfully, it meets the basic legal requirement set forth by TILA.