Under TILA, lenders are required to provide detailed disclosures about mortgage terms, including the annual percentage rate (APR), total cost of the loan, and payment schedule.
Borrowers have a right to rescind certain mortgage refinancing agreements within three business days, offering protection against hasty decisions.
TILA mandates accurate advertising of mortgage terms. If the APR is mentioned, other essential terms must be clearly disclosed to prevent misleading consumers.
The Act ensures consistent calculation of the APR, aiding borrowers in comparing different mortgage products and lenders effectively.
Lenders must provide specific disclosures for ARMs, including information about how rates and payments could change.
TILA requires lenders to deliver a Loan Estimate when applying for a mortgage and a Closing Disclosure before the loan closing, detailing all loan terms and costs.
TILA, enforced by the Consumer Financial Protection Bureau, plays a crucial role in ensuring transparency and fairness in the mortgage lending process, protecting consumers from deceptive lending practices.