Loan Auditors

The Truth In Lending Act (TILA) was passed in 1968 to protect borrowers from unscrupulous and predatory lenders who use bait and switch tactics and other under-the-table marketing tactics and downright dishonest business practices to bilk homeowners out of thousands of dollars by selling them mortgage products they don’t need and can’t afford. If you’ve been a victim of this then you understand why TILA is a necessary piece of legislation.

Since 1968, there have been numerous amendments to the act that provide further protection from homeowners and borrowers:

• Fair Credit Billing Act of 1974
• Consumer Leasing Act of 1976
• Truth in Lending Simplification and Reform Act of 1980
• Fair Credit and Charge Card Disclosure Act of 1988
• Home Equity Loan Consumer Protection Act of 1988
• Home Ownership and Equity Protection Act of 1994
• TILA Amendments of 1995
• Economic Growth and Regulatory Paperwork Reduction Act of 1996

Additionally, Regulation Z, the meat of TILA, was amended in 1987 and 1988.

Regulation Z outlines TILAs disclosure requirements for mortgage lenders and is one place where you’ll find many lenders are in violation of their mortgage agreements.

Prior to TILA, it was difficult for consumers to understand mortgage rates and terms because there was no requirement to format them in any certain way. TILA, however, made a standard for formatting mortgage terms so that borrowers could more easily determine the rates and know what they were getting into. If your mortgage company fails to provide you the correct format for your loan terms then they could be subject to fines and may be forced to refund you a part or all of the borrower’s loan.

It’s important to understand these case law nuances when seeking a loan settlement for a homeowner who may have a lender who has violated TILA.