Definition
The Truth in Lending Act requires lenders to clearly disclose the terms and full cost of credit, including the interest rate and APR, before you sign. TILA also gives borrowers the right to cancel certain refinance transactions within 3 business days.
Related Legal & Compliance Terms
The Nationwide Mortgage Licensing System is the national database for licensed mortgage professionals. All loan originators are required to maintain an NMLS license number, consumers can verify any broker's credentials and history at nmlsconsumeraccess.org.
A mortgage meeting standards set by the Consumer Financial Protection Bureau that provides certain legal protections to lenders. QM loans cap total fees, require verification of the borrower's ability to repay, and generally prohibit risky features like negative amortization.
The Real Estate Settlement Procedures Act governs how lenders disclose closing costs and prohibits kickbacks between settlement service providers. RESPA is why you receive both a Loan Estimate and a Closing Disclosure during the mortgage process.
Helpful Resources
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