What does the Truth in Lending Act (TILA) require from lenders?

The Truth in Lending Act (TILA) requires lenders to provide borrowers with clear and comprehensive information about the true costs of borrowing. This includes details such as the annual percentage rate (APR), the total finance charges, and the total amount to be repaid over the life of the loan. By mandating these disclosures, TILA aims to promote transparency in lending practices and help consumers make informed decisions about credit.

This focus on revealing the actual costs associated with loans is crucial because it enables borrowers to compare different loan offers and understand how the terms impact their financial obligations. This regulation is an essential aspect of consumer protection in the lending industry, ensuring that borrowers are not misled by the terms of their credit agreements.

In contrast, the other options do not accurately capture the main purpose of TILA. The act does not limit its requirements to only mortgage terms, nor does it involve regulating property appraisals or necessitate property inspections prior to listing; those activities are governed by different regulations and practices in real estate.