Final answer:
The term for providing all necessary information to make informed financial decisions is 'full disclosure'. It's part of consumer protection laws that require banks to avoid discrimination and to publicly disclose loan distribution data. To reassure banks, borrowers can share financial details, authorize credit checks, or secure loans with co-signers or collateral.
Step-by-step explanation:
The requirement that all pertinent information about a property or a loan be provided to enable a consumer to make informed choices is referred to as full disclosure. This concept is vital to consumer protection as it ensures that consumers have all necessary information to make educated decisions about financial transactions.
Institutions such as banks are required to comply with a variety of consumer protection laws and to publicly disclose information regarding the loans they issue for house purchasing, including the distribution of those loans geographically and by demographic factors such as sex and race of the loan applicants.
In order to reassure banks of their creditworthiness, potential borrowers might present substantial documentation of their income sources, consent to credit checks, or offer a co-signer or collateral as additional security for the loan. These measures help banks manage the risk associated with lending and comply with the regulations intended to prevent discriminatory lending practices.