Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

The correct choice indicates a requirement that is not mandated by the Federal Trade Commission (FTC). In the context of fixed-rate loans, while proper advertisements must be truthful and not misleading, there is no specific FTC mandate that requires advertisements to include a time period for a fixed-rate loan. Advertisers generally need to ensure that their claims are substantiated and that disclosures are clear and conspicuous, fulfilling other regulatory requirements.

The other options represent key mandates of the FTC. Advertisers must support claims with evidence and documentation to prevent deception. Providing clear and conspicuous disclosures is critical in ensuring that consumers receive necessary information regarding the terms and conditions. Additionally, explaining loan terms orally to clients is a best practice that helps ensure consumer understanding and compliance with truth-in-lending laws, even though it may not be specifically outlined by the FTC in this way.