What is the Truth in Lending Act primarily concerned with?

The Truth in Lending Act (TILA) is primarily concerned with ensuring that consumers are informed about the terms and costs of credit, particularly in relation to loans secured by real property, such as mortgages. One of the primary functions of TILA is to require lenders to provide clear and concise written disclosures regarding the terms of the loan, including the APR (annual percentage rate), total costs, and payment schedule. This disclosure helps consumers understand the financial implications of the loan they are considering, enabling them to make better-informed decisions.

While protecting consumers from unfair lending practices is an important aspect of the broader financial regulatory framework, the specific requirement for lenders to disclose mortgage terms in writing is a direct mandate of TILA. By focusing on transparency and clarity in lending, TILA aims to enhance consumer protection in financial transactions, making informed borrowing easier for consumers.