What is one consequence of failing to comply with the mortgage disclosure requirements?

The correct answer is that consumers may have the right to rescind the agreement when there is a failure to comply with mortgage disclosure requirements. This consequence is significant because the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) establish strict guidelines to ensure transparency and protect consumers in mortgage transactions. When these disclosure requirements are not met, it undermines the consumer's ability to make informed decisions regarding their mortgage.

As a result, consumers are granted the right to rescind the agreement, allowing them a period during which they can cancel the loan and avoid potential disadvantages that could arise from being uninformed about the terms of their mortgage. This right serves as a protective measure to encourage compliance among lenders and ensure that borrowers are clearly informed about their obligations and rights.

The other options suggest incorrect scenarios: fines can be imposed on both lenders and other financial institutions; consequences do exist for non-compliance; and the assertion that disclosure is optional is misleading since regulations typically require it to protect consumers.