What is prohibited concerning the preparation of a mortgage for a home improvement?

Stating a greater monetary obligation than the consideration is prohibited in the preparation of a mortgage for a home improvement. This regulation is important to ensure transparency and fairness in financial dealings. By preventing homeowners from being presented with a higher obligation than what they are actually getting in terms of value, the law protects them from potentially unscrupulous practices that could lead to financial distress. If lenders or salespersons were allowed to state a greater obligation, it could mislead consumers about their actual debt responsibilities, potentially resulting in their inability to meet those obligations if they are based on inflated values. This focus on accurate representation helps maintain credibility and trust in the home improvement industry, ensuring that consumers are fully aware of the terms of their financial commitments.