What does the Truth in lending Act require numerous disclosures to a home mortgage loan applicant including?

Asked by: Ms. Jaunita Bogan  |  Last update: November 1, 2025
Score: 4.8/5 (41 votes)

TILA disclosures include the number of payments, the monthly payment, late fees, whether a borrower can prepay the loan without penalty and other important terms. TILA disclosures is often provided as part of the loan contract, so the borrower may be given the entire contract for review when the TILA is requested.

What does the Truth-in-Lending Act require numerous disclosures to a home mortgage loan applicant including quizlet?

Each of the following is a trigger term, requiring additional disclosures to the applicant: the amount or percentage of a down payment, the number of payments or term of the loan, the amount of any periodic payment, or the amount of any finance charge.

What does the Truth-in-Lending Act require borrowers?

It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans. For loans covered under TILA, you have a right of rescission, which allows you three days to reconsider your decision and back out of the loan process without losing any money.

What does the Home Mortgage Disclosure Act require lenders to disclose?

The Home Mortgage Disclosure Act

HMDA requires many financial institutions to maintain, report, and publicly disclose information about mortgages. The Bureau has released the 2025 Online FIG and Online Supplemental Guide for Quarterly Filers for 2025, which are available here.

What disclosures are mandatory when disclosing a mortgage loan file?

The Closing Disclosure is a five-page form that describes the critical aspects of your mortgage loan, including purchase price, loan fees, interest rate, estimated real estate taxes, insurance, closing costs and other expenses.

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33 related questions found

What disclosures are required by Truth in Lending Act?

TILA disclosures include the number of payments, the monthly payment, late fees, whether a borrower can prepay the loan without penalty and other important terms. TILA disclosures is often provided as part of the loan contract, so the borrower may be given the entire contract for review when the TILA is requested.

What are the mandatory disclosures?

An applicant, recipient, or subrecipient of a Federal award must promptly disclose whenever, in connection with the Federal award (including any activities or subawards thereunder), it has credible evidence of the commission of a violation of Federal criminal law involving fraud, conflict of interest, bribery, or ...

What are the requirements for the Home Mortgage Disclosure Act?

under a pre-approval program (as defined in Regulation C). HMDA also required financial institutions to report certain applicant and borrower demographic data, such as ethnicity, race, gender, and gross income. In addition, the reporting of certain pricing information and the type of purchaser was required.

What two disclosures are required by RESPA?

RESPA is a federal law that requires lenders to provide information about the settlement costs and services involved in a mortgage transaction. The TILA-RESPA Integrated Disclosure (TRID) rule requires two forms: the Loan Estimate and the Closing Disclosure.

What are the initial disclosures for a mortgage loan?

Initial disclosures are the preliminary disclosures that must be acknowledged and signed in order to move forward with your loan application. These disclosures outline the initial terms of the mortgage application and also include federal and state required mortgage disclosures.

What does the Truth Lending Act require?

The Truth in Lending Act (TILA; 15 U.S.C. §§1601 et seq.) requires creditors to disclose standardized information for various financing products and offers additional consumer protections.

What does the Truth in Lending Act require quizlet?

The Truth-in-Lending Act (TILA) requires sellers and lenders to disclose credit terms or loan terms so that individuals can shop around for the best financing arrangements. Regulation Z governs: Credit provisions associated with installment sales contracts.

What is FCRA disclosure?

The FCRA gives you the right to be told if information in your credit file is used against you to deny your application for credit, employment or insurance. The FCRA also gives you the right to request and access all the information a consumer reporting agency has about you (this is called "file disclosure").

What is the main objective of the Truth in Lending disclosure requirements?

TILA is intended to ensure that credit terms, like the ones mentioned above, are disclosed in a meaningful way so that consumers can compare terms more readily and make knowledgeable decisions about loans and other types of credit.

What does the Truth in Lending Act require disclosure of all of the following except?

Final answer: The Truth in Lending Act requires lenders to disclose the APR, finance charge, and total amount due, but not the customer's credit score, hence the correct option is d) customer's credit score.

Which of these disclosures is required to be given by the lender to the loan applicant at least three days before the applicant signs their mortgage loan papers?

Initial Closing Disclosure: The lender is required to provide the borrower with an initial Closing Disclosure at least three business days before the scheduled closing date. Review period: The borrower is given a three-day period to review the Closing Disclosure.

What are the RESPA requirements?

The act requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process. The act also prohibits specific practices, such as kickbacks, and places limitations upon the use of escrow accounts.

What disclosures are required within 3 days of application?

Loan Estimate Form: Replaces the initial Truth-in-Lending disclosure and the Good Faith Estimate. It must be provided to borrowers within three business days of submitting a mortgage application. This form summarizes key loan terms, estimated loan and closing costs, and other critical information.

What are mortgage servicing transfer disclosures required for?

By law, you are entitled to mortgage servicing disclosures when you buy a home that you financed with a loan. These disclosures require the lender or mortgage broker to provide you with information such as whether the lender plans to service the loan itself or transfer this task to another lender.

What are the disclosure requirements?

'Disclosure Requirement' refers to the mandatory rules and regulations that dictate the full reporting of financial transactions, including contributions and expenditures, related to political campaigns or organizations.

Which disclosure is required by RESPA?

Servicing Disclosure Statement

RESPA requires the lender or mortgage broker to tell you in writing, when you apply for a loan or within the next three business days, whether it expects that someone else will be servicing your loan (collecting your payments).

What disclosures are required by the Homeowners Protection Act?

The Act requires the lender in a residential mortgage transaction to provide to the borrower, at the time of consummation, certain disclosures that describe the borrower's rights for PMI cancellation and termination. A borrower may not be charged for any disclosure required by the Act.

What are legally required disclosures?

The receiving party or its representatives may be required by oral questions (i.e., testimony), interrogatories, or other requests for documents in legal proceedings, subpoenas, civil investigative demands, or similar processes, to disclose confidential information.

What are required TILA disclosures?

The Truth in Lending Act (TILA) requires lenders to disclose important information to borrowers about the cost of a loan before the borrower agrees to the loan. For example, TILA disclosures are required on all car loans and mortgages for houses.

What are the five 5 forms of disclosure?

The five common ways that children convey their abuse:
  • help-seeking behaviour.
  • telling without words.
  • partially telling.
  • telling others.
  • telling in detail.