What must be disclosed to consumers about loan terms?

The correct answer focuses on the necessity for lenders to provide comprehensive information about all material loan terms and conditions to consumers. This transparency ensures that borrowers fully understand what they are agreeing to before entering into a loan agreement. Important loan terms typically include the interest rate, the loan amount, repayment terms, and any applicable fees or penalties.

Disclosing all material terms helps consumers make informed decisions and compare different loan products effectively. It's part of regulatory requirements and practices aimed at protecting consumers in the lending process, ensuring that they are not misled and are fully aware of their financial obligations.

The other options provided, while they mention aspects of loan pricing or costs, do not encompass the full breadth of what must be disclosed. Simply providing the total cost of the loan or the lender's profit margin does not adequately inform a consumer about the loan specifics that are critical for their financial decisions. Similarly, loan processor fees, while part of the equation, do not represent the comprehensive information necessary for a consumer to understand the loan terms as a whole.