The Truth in Lending ActArticle Posted by Expert Author: Tony Caro on 08/17/2012
Without a doubt, one of the most helpful laws ever enacted was the Truth in Lending Act. For those seeking a first time mortgage or even refinancing a mortgage, this federal law can prove to be a great protection against fraud. This is not to infer fraud is rampant with the San Diego refinance home mortgage industry but issues may arise. The Truth in Lending Act was (is) a subset of the Consumer Protection Act and it is designed to promote full disclosure between lenders and borrowers. While it is true the vast majority of people in the mortgage industry run reputable businesses, there are those entities that might not be t honest in their transactions. The common approach to dishonest lending is not disclosing all terms, conditions, and costs associated with the loan. Thanks to the Truth in Lending Act, deceptive practices such as these are not as widespread although they do exist.
As they say, knowledge is power. While lending institutions are bound by important laws like the Truth in Lending Act, there are certainly some shady organizations out there that will try to bend the rules in order to profit by taking advantage of unsuspecting consumers. Make sure you educate yourself so that you can spot fraud when you are presented with it. At The Refi Guide, we help educate consumers.
Article Posted In: Industry News Useful Articles