The Annual Percentage Rate (APR) is the cost of credit that consumers pay, expressed as a simple annual percentage. It represents the annual effective interest rate charged on loans or credit and is mandated by the federal Truth in Lending Act to be disclosed in all consumer loan agreements.
A landmark federal legislation establishing rules of disclosure that lenders must observe in dealings with borrowers, ensuring transparent consumer lending practices.
A loan officer is the person responsible for guiding borrowers through the loan application process, ensuring all necessary documentation is provided, and overseeing the processing of loan applications until approval.
Regulation Z is a body of regulations promulgated by the Federal Reserve Board pursuant to the federal Truth in Lending Act (TILA), ensuring that borrowers are informed of the terms of credit, including the Annual Percentage Rate (APR) and the total cost of credit.
Rescinding a contract entails the cancellation or annulment of the agreement, returning both parties to their pre-contractual status. The Truth in Lending Act provides a 'Right of Rescission' which allows signers to nullify the contract within a specified period.
The Truth in Lending Act (TILA) is a federal law designed to ensure that consumers are provided with accurate and transparent information regarding the cost of credit, allowing them to compare credit offers more effectively. It mandates commercial lenders to disclose the annual interest rate and total interest charges, and provides borrowers a three-day rescission period for certain secured loans.
