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The Truth in Lending Act

TILABeginning on June 1st, 2013, The Truth in Lending Act or TILA ban on mandatory arbitration provisions in certain mortgage loans became effective.  This has effected applications received on or after the June 1st deadline.

Under this ban, lenders using the loan documentation that contains such requirements will be required to remove them for loans covered.

Now make sure you note that this bans does implement a provision of the Dodd-Frank Act.  The provision bans “terms that require arbitration or any other non-judicial procedure to resolve any controversy or settle any claims arising out of the transaction.”

Lenders using loan documentation that contains such requirements will be required to remove them for loans covered under the ban. The ban implements a provision of the Dodd-Frank Act that bans “terms that require arbitration or any other non-judicial procedure to resolve any controversy or settle any claims arising out of the transaction.”

There is more detailed information here about the regulations, Regulation Z, and additional links for more resources on this news.

July 2, 2013 Posted by | Legislation | , , , , , , , , , , , | Leave a comment