The Truth in Lending Act (TILA) was passed by the U.S. Congress in 1968 with the purpose of leveling the playing field between borrowers and lenders. To put it simply, the average person applying for a home mortgage knows little or nothing about the subjects of finance and real estate law, and he or she can easily be taken advantage of by a lender. Consider, for example, the fact that the paperwork involved in a home purchase will typically include several hundred pages, and even if the buyer is willing to confront the task of reading them all, this challenge is made nearly impossible by the density and obscurity of the language used.

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   Under TILA, banks and other mortgage lenders are legally required to make certain disclosures to the borrower, including covering matters such as the annual percentage rate, the monthly payment amount, any details about possible future increases in the interest rate and payment rate, and the maximum monthly payment amount. Failure to make such disclosures may provide the borrower with grounds to sue for damages. Violations of TILA can range from simple omissions to outright Predatory Lending practices such as intentionally misleading the borrower as to the terms of the loan.