Question:

What includes the Truth in Lending Act Regulation Z?

Answer:

The Truth in Lending Act Regulation Z requires that lenders provide certain disclosure information on loans under RESPA - the Real Estate Settlement Procedures Act. Regulation Z demands an early and final disclosure details about a mortgage loan.

Regulation Z early disclosure is required within 3 business days of home loan application inquiry. It will be based on whatever personal information has been provided by the applicant.

Official final disclosure statement per Regulation Z (also called TIL settlement statement) has to be provided at closing.

Truth-in-Lending Act (TILA) Regulation Z General Disclosure Details

  • Creditor name and address;
  • Contract reference number;
  • Loan amount;
  • Loan amount itemized;
  • Loan related costs and charges;
  • Annual Percentage Rate (APR);
  • Interest rate information;
  • Amortization table;
  • Total loan payments - loan amount plus interest cost;
  • Any demand clauses;
  • Early and late payment policies explained;
  • House sales price;
  • Mortgage insurance premiums (if applicable);
  • Mortgage assumption policy;
  • Required earnest money.

TIL Regulation Z ARM Disclosures

Additional adjustable rate mortgage disclosure information is required from lenders for any loans whose interest rate and monthly payments can increase over the life of the loan. Those are the booklet Consumer Handbook on Adjustable Rate Mortgages, published by the Office of Thrift Supervision and any additional loan information as prescribed for adjustable rate loans by Regulation Z.

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