Housing and Community Development (HCD) Practice Exam

What is a requirement for advertising credit terms for a manufactured home on a time payment basis?

1. The credit terms must be in at least 10 point bold font typeface

2. The credit terms shall comply with all requirements of Section 1797 of the California Health and Safety Code

3. Finance disclosure must be in compliance with Regulation Z requirements

4. All of the above are required

The correct answer is: The credit terms must be in at least 10 point bold font typeface

The requirement for advertising credit terms for a manufactured home on a time payment basis encompasses several regulatory standards that protect consumers and ensure transparency in financing practices. The correct answer aligns with the necessity for clear communication regarding financial terms. In this context, having credit terms in at least a 10-point bold font typeface serves to enhance visibility and readability. This is crucial, as it ensures that consumers can easily understand the financing options available to them, thereby enabling them to make informed decisions. Visibility in advertising is a key principle in consumer protection, as it helps prevent any potential manipulation or misunderstanding regarding the financing conditions. Additionally, other regulations governing credit terms, such as those outlined in the California Health and Safety Code and Regulation Z, emphasize the importance of providing comprehensive disclosures. While these additional requirements play a significant role in creating a transparent and fair lending environment, the specific emphasis on font size and clarity exemplifies an initial straightforward characteristic of consumer protection in advertising. Thus, while the credit terms must indeed adhere to more comprehensive regulations, the specific requirement about using bold font type effectively highlights the essential role of clear and accessible information in the financing process.