Which two federal regulations have the most pertinent disclosure requirements related to loan terms?

The two federal regulations that have the most pertinent disclosure requirements related to loan terms are TILA (Truth in Lending Act) and RESPA (Real Estate Settlement Procedures Act).

TILA is designed to promote informed use of consumer credit by requiring clear disclosure of key terms of the lending arrangement and all costs. It mandates that lenders provide transparent information regarding interest rates, terms of the loan, and any fees associated with the mortgage. This ensures that borrowers can understand the full cost involved with the loans they are considering.

RESPA complements TILA by focusing specifically on the settlement process in the mortgage transaction. It requires lenders and other parties to provide detailed disclosures regarding the costs associated with the closing and settlement of a mortgage, along with the handling of escrow accounts. This regulation helps to prevent surprises regarding settlement costs and ensures transparency in the mortgage process.

Together, these two regulations ensure that borrowers are fully informed about the terms of their loans, costs involved, and potential risks, thus promoting fairness and clarity in lending practices.