Recent Changes in Truth in Lending Acts-What to Expect in the Revisions

There are certain modifications applied in the Truth in Lending Acts or TILA in the real estate industry, particularly in mortgage loans. Effective July 30, 2009, loan applications by eligible borrowers are subject to compliance with the new regulations implemented in the TILA requirements.

What is Truth in Lending Acts?

Basically, Truth in Lending Acts is a federal law that is quite related with the good faith estimate, only having slight differences in the comprehensive and detailed information it provides. Some of the salient information included in TILA are the monthly payment, loan tenure, the annual percentage rate or APR and the loan amount. These information are comprehensively provided by the lender in order to include in the credit contract that is duly signed by the buyer and lender at the culmination of their transaction. (more…)