Truth-in-Lending Act (TILA)
Reformation - the
final rule regarding TILA changes should be published at some point
in 2010. The final rule will indicate the effective date of
the changes, but some of the most significant changes are:
redefining fees and charges considered finance charges for
APR purposes; a complete change to the Truth-in-Lending Statement
content & format, including amortization types, etc.;
prohibition of payments to mortgage brokers or creditor loan
officers based on the interest rate or other loan terms,
prohibition on steering consumers to less than favorable loans in
order to increase compensation; 60-day notification of ARM
loan changes; monthly statements on loans where negative
amortization is possible; replacement of the HELOC
disclosure, enhanced periodic statements for open-end credit;
45-day notice for changes to HELOC terms and changes to
protections regarding credit line suspensions or
reductions.
