Definition of Truth-in-Lending Act
Orange County Truth-in-Lending Act
A set of US government guidelines for lending practices to ensure that borrowers receive information about their loans upfront, prior to signing their loan documents. As part of the Consumer Credit Protection Act, this act requires all Orange County lenders to disclose information regarding loan origination fees, payment schedules, the annual percentage rate (APR), along with borrowers' rights to rescind their application within 3-days after signing (there is no ‘cooling off period’ or 3-day right to rescind for purchase mortgages). Similar to RESPA, the truth-in-lending act requires lenders to give Orange County borrowers a Good Faith Estimate within three business days of a loan application. In the summer of 2009, the Federal Reserve Board *(FED) released new proposal to improve disclosure on Orange County mortgages with even more specific guidelines for lenders to follow when educating borrowers about their loan costs and options.