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Truth in Lending Act

This policy and procedure guide addresses Truth in Lending Act (TILA) and its implementing Regulation Z requirements consumer protections in relation to open-end and closed-end credit transactions.


Overview

The AllRegs® Truth in Lending Act Policy and Procedure Guide assists financial institutions in ensuring that credit terms are disclosed in a meaningful way so consumers can compare credit terms more readily and knowledgeably.

The Truth in Lending Act Guide addresses the following topics:

Open-end credit plans (HELOC) provisions, including:

  • General disclosure requirements
  • Important Terms Disclosure and Brochure
  • Limitations on HELOC plans
  • Change in Terms
  • Application Fee
  • Refund of Fees
  • Disclosure of supplement credit devices
  • Periodic statements, billing rights, and error resolution
  • Right of rescission

Closed-end credit plans, including:

  • General disclosure requirements
  • Variable rate transactions
  • Written estimate of terms
  • Loan Estimate and Closing Disclosure
  • Assumptions
  • Escrow administration
  • Treatment of credit balances
  • Right of rescission
  • High-Cost mortgages
  • Reverse mortgages
  • Higher-priced mortgage loans
  • Prohibited acts and practices
  • Periodic statements
  • Valuation independence
  • Ability to repay and qualified mortgages

Additional guide topics:

  • Operational compliance
  • Record retention
  • Exhibits
  • Best practices

Benefits

The guide features the following benefits:

  • Supports strong operational practices and preparedness
  • Explains roles and responsibilities
  • Explains what to expect and how to work with auditors
  • Provides practical guidance for managing the audit process from within
  • Features an audit tracking spreadsheet as an optional tool

Optional Services

Maintenance: Receive regular and ongoing industry updates to keep your guide within regulatory requirements.

Publishing: Publish your guide, including your company procedures, in AllRegs Online.

Contact your account manager for information regarding these optional services!

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