Truth-In-Lending Law

A Federal law was passed in July of 1969 declared that all lending institutions must disclose all fees and charges in connection with the purchase or financing of real or personal property. In the sale of real property, the lender must furnish a truth-in-lending statement which discloses all charges to both Buyer and Seller in connection with the financing. They must also disclose interest on full term of the loan and set forth late charges, prepayment penalty and full terms of note. This must be signed by the borrower before the rest of the loan package can be signed.