Ben Ciuffa’s Photo Journals

December 10, 2011

Truth in lending & Phil Gramm

Filed under: Occupy — admin @ 9:10 am

Googled¬†¬† info for Lloyd S….d S


Paul Krugman has called Senator Phil Gramm “the father of the financial crisis” due to his sponsorship of the act. ….. If one assumes that the housing market is efficient, the expected change in housing prices (relative to …. “More Awful Truths About Republicans”. …

Phil Gramm: Recession Is “Mental,” America Is “Nation Of Whiners” 2008 McCain adviser

The Truth in Lending act was created in the year 1968 with the purpose of protecting consumers in their transactions with creditors and lenders. It was implemented by the Federal Reserve by several regulations. The most important features of the act are the information that should be disclosed to a borrower before a credit is extended, the annual rate of percentage, loan term and the total costs of the borrower. All information should be conspicuously on the documents presented to the borrower before signing.

I edited& highlighted.This 12-11-11

Understanding the Mortgage Meltdown
What happened and Who’s to Blame: by Richard Gandon

It seems quite easy to point fingers at greedy Wall Street titans for causing the sub-prime mortgage crises. They after all, put together the deals that allowed banks to underwrite mortgages and then offload these liabilities to investors. What many fail to realize is that there is no shortage of blame to go around from homeowners buying more home than they could afford to real estate agents looking for more commission dollars. Mortgage brokers and bankers, the banks themselves, ratings agencies such as Moody’s and Standard & Poor’s, Wall Street, the Fed and last but certainly not least, the Federal Government.

Let’s start with the homeowners–the people who are now in the process or soon to enter the process, of losing their homes. Some of these people had never before owned a home and as such, may not have been prepared for the costs associated with homeownership. Basic financial literacy is sorely lacking in this country despite there being no shortage of budgeting and tracking programs readily available such as Quicken and Microsoft Money. The lack of financial literacy does not absolve these buyers of their responsibility. Every borrower receives a truth in lending disclosure statement. Here is a portion of what the act covers:

The purpose of TILA (Truth In Lending Act) is to promote the informed use of consumer credit by requiring disclosures about its terms and cost. TILA also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer’s principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes. With the exception of certain high-cost mortgage loans, TILA does not regulate the charges that may be imposed for consumer credit.

TILA requires a maximum interest rate to be stated in variable-rate contracts secured by the consumer’s dwelling. It also imposes limitations on home equity plans that are subject to the requirements of Sec. 226.5b and mortgages that are subject to the requirements of Sec. 226.32. The regulation prohibits certain acts or practices in connection with credit secured by a consumer’s principal dwelling.


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