There are a lot of mortgage and homeowner terms that can be overwhelming if you’re unfamiliar with them. The Truth In Lending Act (TILA) is important to be aware of if you own a house or are in the process of purchasing a home.
The TILA is a federal act intended to protect homeowners from mortgage lenders’ predatory or illegal lending practices. If you’re worried about your mortgage or a mortgage you’ve been offered, it’s important to learn about the TILA and how it can help you.
Joshua Denbeaux is an experienced New Jersey mortgage and foreclosure attorney who’s committed to protecting consumer rights. If you think your mortgage might be in violation of the Truth in Lending Act, contact Denbeaux & Denbeaux today.
Truth in Lending Act
The federal Truth in Lending Act is intended to protect homeowners from inaccurate and unfair credit billing and credit card practices. TILA requires lenders to provide you with written loan cost information so you can compare loan costs for different types of loans or lenders.
The right of rescission is an important aspect of the TILA. With a right of rescission, you’re guaranteed three days to consider your mortgage decision and back out of the loan process without losing any money. The ability to back out is intended to protect homeowners from high-pressure sales tactics by lenders.
It’s important to note that the TILA doesn’t tell banks or lenders how much interest they can charge or that they must give consumers a loan. It mainly outlines information that must be provided to homeowners.
Federal Organizations and the TILA
Under the TILA, the Office of the Comptroller of the Currency (OCC) is authorized to order supervised institutions to make monetary and other adjustments to the accounts of consumers if APR or finance charges were inaccurately disclosed.
The Federal Trade Commission (FTC) also has responsibility under the TILA. The FTC can enforce compliance by most non-depository entities with a variety of statutory provisions.
Truth In Lending Act Violations
There are a lot of different things that could qualify as TILA violations. Violations of the Truth In Lending Act tend to be kind of subtle. If you feel like there’s something concerning with your mortgage, you should contact an attorney. Attorneys have more experience with the TILA and can spot violations more easily than the average person.
Some violations include wrong or improper disclosures of:
- Amount financed
- Finance charges
- Payment schedule
- Total of payments
- Annual percentage rate
- Security interest disclosures
An incorrect disclosure or certain types of disclosures could be grounds for rescission. If your mortgage is rescinded, your lender has to give back closing costs and finance charges. However, the homeowner is responsible for presenting the balance of the mortgage. In order to have the balance of the mortgage to pay off the lender, you could refinance or sell your home.
Contact a Mortgage Attorney Today
Truth in Lending Act violations can be difficult to identify as an average person. If something seems off with your loan, you should contact an attorney.
An experienced attorney can help identify if there’s an issue with your loan. If an issue is found, an attorney can help you fight the violation and advise you on how to correct your loan and refinance your mortgage to keep your home.
Contact Denbeaux & Denbeaux to learn more about how we may be able to help you with a mortgage violating the Truth in Lending Act.