Which act requires lenders to inform borrowers about the terms of a home equity loan?

The Truth in Lending Act (TILA) is the correct answer because it mandates that lenders provide clear and comprehensive information about the terms and costs associated with credit, including home equity loans. Under TILA, lenders are required to disclose key financial aspects such as the annual percentage rate (APR), total finance charges, and the payment schedule. This ensures that borrowers are fully informed and can compare loan options effectively, ultimately promoting transparency and responsible borrowing.

While other acts mentioned have their own specific functions, they do not focus primarily on the disclosure of loan terms for consumers in the same way TILA does. For example, the Fair Housing Act addresses discrimination in housing, while the Real Estate Settlement Procedures Act focuses on transparency in real estate transactions and the associated settlement costs. The Home Ownership and Equity Protection Act targets predatory lending practices. Each of these acts plays an important role in consumer protection, but TILA is distinctly focused on lending terms, making it the essential regulation when it comes to informing borrowers about home equity loans.