Which aspect of lending does the Truth-In-Lending Act regulate?

The Truth-In-Lending Act (TILA) primarily regulates the advertising and disclosure of loan costs to consumers. Its main goal is to promote informed use of credit by requiring clear and understandable disclosures regarding the terms and costs associated with loans. This includes information about interest rates, fees, and other costs so that borrowers can make informed decisions about their borrowing options. By mandating transparency in loan terms, TILA aims to prevent misleading and deceptive practices in lending, ensuring that consumers are fully aware of what they are agreeing to when taking out a loan.

The other aspects mentioned in the choices do not fall under the scope of TILA. For instance, while insurance premiums can be related to mortgages, TILA specifically focuses on loan terms and costs rather than insurance products themselves. Similarly, commercial lending practices and rebate programs for borrowers are not directly addressed by TILA, as the act primarily targets consumer loans and credit transactions rather than business financing or specific borrower incentives.