What is the primary goal of the Truth in Lending Act?

Prepare for the Georgia Real Estate Pre-Licensing Test with comprehensive flashcards and multiple choice questions, complete with hints and explanations. Set yourself up for success!

The primary goal of the Truth in Lending Act (TILA) is to ensure fair treatment of mortgage borrowers by requiring clear and accurate disclosure of terms and costs associated with borrowing. TILA aims to promote informed consumer choices and protect consumers from misleading lending practices. It mandates that lenders provide comprehensive information to borrowers about the annual percentage rate (APR), the total cost of credit, and other key terms of the mortgage, enabling potential homeowners to understand their financial commitments.

By requiring transparency in lending practices, TILA helps borrowers compare offers and make informed decisions regarding mortgages. This focus on fair treatment is essential in fostering trust between lenders and borrowers, ensuring that consumers are not subjected to unfair or deceptive practices in the lending process.

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