Truth in Lending Act

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Truth in Lending Act

The Truth in Lending Act is contained in Title I of the Consumer Credit Protection Act (15 U.S.C.A. § 1601 et seq.). The CCPA is designed to assure that every customer who needs Consumer Credit is given meaningful information concerning the cost of such credit. The Truth in Lending Act requires that the terms in transactions involving consumer credit be fully explained to the prospective debtors. It sets forth three basic rules: (1) a creditor cannot advertise a deal that ordinarily is not available to anyone except a preferred borrower; (2) advertisements must contain either all of the terms of a credit transaction or none of them; and (3) if the credit is to be repaid in more than four payments, the agreement must indicate, in clear and conspicuous print, that "the cost of credit is included in the price quoted for the goods and services." This law does not impose regulations upon the advertising media, only upon the prospective creditor.

Cross-references

Consumer Protection.

Truth in Lending Act

n. a Federal statute which requires a commercial lender (bank, savings and loan, mortgage broker) to give a borrower exact information on interest rates and a three-day period in which the borrower may compare and consider competitive terms and cancel the loan agreement.

References in periodicals archive ?
It begins with an overview of mortgage lending and how the mortgage market works, then covers the license requirements in all 50 states; compensation and how originators make money in the mortgage market; federal regulations, including the Truth-in-Lending Act, the Equal Credit Opportunity Act, the Real Estate Settlement and Procedures Act, and other regulations; the underwriting and approval guidelines for conforming loans; non-traditional and government loans; and general real estate purchase information.
Appleton, Wisconsin, a complete product and pricing platform, has enhanced its solutions to help lenders maintain compliance with federal Truth-in-Lending Act (TILA) changes that were scheduled to take effect on April 1, 2011, while at the same time continuing to deliver intuitive, real-time, up-to the-minute loan pricing with integrated marketing and secondary tools.
Rounding out the top three concerns were Truth-in-Lending Act (TILA) changes (74 percent cited major concern) and other RESPA issues (66 percent cited major concern).
The integration provides joint Interthinx and MortgageFlex customers the ability to perform fraud-prevention and risk-mitigation tests on loans before approval and to verify that approved loans are in compliance with hundreds of federal and state anti-predatory-lending requirements, including the Home Ownership and Equity Protection Act (HOEPA) section 35, Truth-In-Lending Act (TILL) and Mortgage Disclosure Improvement Act (MDIA) tolerances.