Which act emphasizes transparency in the lending process and requires disclosures to borrowers?

The Truth-In-Lending Act (TILA) is the legislation specifically designed to promote transparency in the lending process by requiring lenders to provide clear and concise disclosures about the terms and costs associated with borrowing. This act ensures that borrowers are fully informed about the financial implications of their loans, including interest rates, fees, and the total cost of credit over the life of the loan.

TILA mandates that lenders disclose key terms in a standardized format, making it easier for consumers to compare different loan offers and understand their obligations. This emphasis on transparency is crucial for consumer protection, helping borrowers make informed financial decisions and avoid hidden costs and surprises.

The other acts mentioned in the question focus on different aspects of lending and consumer protection. For instance, the Real Estate Settlement Procedures Act (RESPA) deals specifically with disclosures related to the closing process and settlement costs rather than overall lending transparency. The Equal Credit Opportunity Act seeks to prevent discrimination in lending practices but does not directly address disclosure requirements. The Home Mortgage Disclosure Act primarily focuses on collecting and reporting data about mortgage lending patterns to ensure fair lending practices, rather than on providing borrowers with information about loan terms. This distinctive focus on transparency and clear disclosures makes the Truth-In-Lending Act the correct choice in this context.