Which of the following describes the term "material terms" in risk-based pricing?

The term "material terms" in the context of risk-based pricing specifically refers to terms that are significantly different from what is commonly offered in the marketplace. This can include interest rates, fees, or other loan conditions that would vary substantially based on the borrower's creditworthiness or risk profile.

When discussing risk-based pricing, it is essential to understand that lenders assess the risk associated with each borrower and alter the terms accordingly. Thus, what distinguishes these material terms is their substantial difference from general offerings available to the broader pool of potential borrowers. Lenders must disclose these material terms to ensure that borrowers understand how their risk profile influences the terms of their loans.

The other options do not accurately define "material terms." Terms associated with promotional rates, for instance, may not necessarily reflect the unique pricing based on individual risk assessments but rather a temporary offer. Standard terms are uniform and do not account for individual risk levels, while terms aimed only at high-risk members do not encompass the broader concept of materiality related to different offerings overall. Hence, the correct description of "material terms" aligns with terms that are markedly different due to an individual's assessed risk.