Which federal law requires lenders to provide a disclosure of their mortgage lending practices?

The Truth in Lending Act (TILA) requires lenders to provide clear and comprehensive disclosures regarding their mortgage lending practices. The primary aim of TILA is to promote informed credit decisions by ensuring that consumers are aware of the costs associated with borrowing money. This law mandates specific disclosures about interest rates, terms, and total costs of the loan, which helps borrowers understand the true cost of credit and compare different loan products.

While the other laws mentioned also play critical roles in consumer protection within the mortgage lending space, they do so with different focuses. The Home Mortgage Disclosure Act pertains to the reporting of data related to mortgage lending practices to prevent discrimination in lending. The Real Estate Settlement Procedures Act handles transparency in the closing process of real estate transactions, and the Equal Credit Opportunity Act is aimed at preventing discrimination in credit transactions based on certain protected characteristics. Each of these laws contributes to the overall framework of federal mortgage regulation but does not specifically address the disclosure of lending practices in the same manner as TILA.