Truth In Leading Act ‐ Audit Description
Here are a few of the most common infractions and the law’s to support the allegations:
1. Improper “Finance Charge” Disclosure forms as required
by 12 USC 2601 et seq. and regulation X, part 3500.
2. Improper impound fees and disclosure documents as required
by 12 USC 2601 et seq. and regulation X, part 3500.
3. Unsigned mortgage documents as required
by 12 USC 2601 et seq.
4. Unsigned adjustable rate rider documents as required
by 12 USC 2601 et seq.
5. Maximum interest rate is above 12% and is usury.
6. Maximum interest rate was not disclosed as being usury as required
by 12 USC 2601 et seq.
Tila audits provide a remedy for mortgage loan disclosure abuses. The single most important remedy for
the homeowner facing foreclosure is:
The Truth in Lending Act, 15 U.S.C. §§1601 et seq. (“TILA”), as amended by the Home Ownership and Equity Protection
Act of 1994 ("HOEPA"), Pub. L. 103‐325, 108 Stat. 2190, adding 15 U.S.C. §§1602(aa) and 1639, and implementing
FRB Regulation Z; 12 C.F.R. part 226.
“The legislative history [of TILA] makes crystal clear that lack of uniformity in the disclosure of the cost of credit was one
of the major evils to be remedied by the Act.”
Documents needed:
Documents you received at closing including. (You may not have all).
1. Good Faith Estimate 2. Privacy Disclosure
3. Hud‐1 Settlement Statement 4. Pre‐Approval Letters
5. Promissory Note 6. Broker's Agreements
7. Deed of Trust/ Mortgage 8. Disbursal Disclosures
9. Loan Application 10. Fair Housing Act Disclosure
11. Itemization of “Amount Financed” 12. Escrow Statements
13. Advertisements re Loan Rate 14. Variable Rate Disclosures
15. Adjustable Rate Riders 16. Payment Coupon
17. HUD Brochures 18. Business Affiliations Disclosure
19. Right to Cancel Notices 20. Any other documents received at closing
21. "PMI" Private Mortgage Insurance Disclosure
22. Prepaid Finance Charge Itemization Disclosure
23. Equal Credit Opportunity Act Disclosure
24. Truth In Lending Disclosure Statement
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