Which act requires disclosure of loan terms to borrowers?

The Truth-in-Lending Act is the legislation that mandates lenders to disclose clear and concise loan terms to borrowers. This law is designed to protect consumers by ensuring they receive important information regarding the costs associated with borrowing, including the annual percentage rate (APR), finance charges, and the total amount financed. By requiring an honest representation of loan terms, the Act helps consumers make informed decisions about obtaining credit, ultimately promoting transparency in lending practices.

The other acts mentioned serve different purposes. For example, the Equal Credit Opportunity Act focuses on preventing discriminatory lending practices, while the Real Estate Settlement Procedures Act regulates settlement fees and requires disclosures related to the closing process in real estate transactions. The Home Mortgage Disclosure Act, on the other hand, aims to provide the public with information regarding the lending patterns of financial institutions to combat discrimination. Each of these acts plays a crucial role in the broader regulatory framework, but it is the Truth-in-Lending Act that specifically pertains to the disclosure of loan terms to consumers.