Which disclosure must include the Annual Percentage Rate (APR) to comply with TILA?

The Loan Estimate is the correct choice because it is a document specifically designed to provide borrowers with clear and concise information about the terms of their loan, including the Annual Percentage Rate (APR). The Truth in Lending Act (TILA) requires that the APR, which reflects the true cost of borrowing, be disclosed to borrowers in any loan estimate they receive.

The Loan Estimate must be provided to consumers within three business days of their loan application and includes important details such as the interest rate, monthly payment, and the total costs associated with the mortgage. By including the APR, it allows borrowers to compare different loan options more effectively and make informed decisions.

In contrast, while the Closing Disclosure does also include the APR, it is intended for disclosure at a later stage in the process, specifically before finalizing the loan. The Good Faith Estimate, although it provided information similar to the Loan Estimate before the TILA changes, is no longer used for most transactions. The Truth-in-Lending Statement, while it has historically been important, has been replaced in many instances by the Loan Estimate and Closing Disclosure under the integrated mortgage disclosures rule. Thus, the Loan Estimate remains the primary document that incorporates the APR as part of its essential disclosures for compliance with TILA.