Which act is designed to ensure that consumers receive useful information about mortgage loans?

The Truth in Lending Act (TILA) is designed to ensure that consumers receive clear and comprehensible information about the costs associated with borrowing money, particularly regarding mortgage loans. This federal law mandates that lenders disclose important terms and conditions of loan agreements, including the annual percentage rate (APR), payment schedules, and the total amount financed. By providing this information, TILA aims to promote informed consumer decision-making and encourages transparency in the lending process.

This focus on consumer protection helps borrowers understand the true cost of borrowing, allowing them to compare different financing options more effectively. Over time, TILA has played a critical role in helping to prevent deceptive lending practices and ensuring that consumers have access to the information they need to make sound financial decisions related to mortgages.