What is the primary purpose of the Truth in Lending Act (TILA)?
TILA is designed to promote informed use of consumer credit by requiring disclosures about terms and costs.
Which law protects consumers against discrimination in lending?
The Equal Credit Opportunity Act (ECOA) ensures all credit applicants are treated fairly regardless of race, sex, or other protected factors.
What is the purpose of the Real Estate Settlement Procedures Act (RESPA)?
RESPA requires disclosure of all settlement costs and prohibits kickbacks in the real estate settlement process.
Which agency enforces most consumer financial protection laws?
The Consumer Financial Protection Bureau (CFPB) oversees and enforces laws that ensure consumers are treated fairly by financial institutions.
What does the Fair Credit Reporting Act (FCRA) regulate?
FCRA promotes accuracy, fairness, and privacy of information in the files of consumer reporting agencies.
What is the purpose of anti-money laundering (AML) regulations?
AML regulations are designed to detect and prevent illegal financial activities, such as money laundering and fraud.
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Why is the Bank Secrecy Act important in lending compliance?
The Bank Secrecy Act helps prevent financial crimes by requiring institutions to report large or suspicious transactions.
What is the role of the Home Mortgage Disclosure Act (HMDA)?
HMDA requires lenders to report public loan data to detect housing discrimination and support fair lending practices.
Which regulation requires lenders to verify a borrower's ability to repay?
The Ability-to-Repay rule, part of Dodd-Frank, requires lenders to evaluate a borrower's financial capacity to repay a loan.