Which act regulates the practices of mortgage lenders and their advertising?

The Truth in Lending Act (TILA) is the correct choice because it was specifically designed to promote informed use of consumer credit by requiring disclosures about its terms and cost. This act mandates that lenders provide clear and standardized information regarding mortgage lending, including the annual percentage rate (APR), finance charges, and other key terms of lending. The intent behind TILA is to protect consumers from misleading advertising and unsustainable borrowing practices.

While the other acts listed serve important functions in consumer protection, they focus on different aspects. The Real Estate Settlement Procedures Act (RESPA) primarily deals with disclosures related to the settlement process, ensuring that borrowers receive pertinent information about the costs of closing a mortgage and prohibiting kickbacks and referral fees. The Fair Housing Act addresses discrimination in housing and lending based on race, color, religion, sex, national origin, familial status, or disability, rather than regulating mortgage lending practices directly. The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending but does not specifically focus on advertising practices like TILA does.

Thus, TILA is the act that most directly regulates the practices of mortgage lenders in terms of their advertising and the information they are required to provide to consumers.