Final answer:
The Mortgage Disclosure Improvement Act (MDIA) seeks to inform consumers about the costs and terms of their mortgage loan and protect them from predatory lending practices.
Step-by-step explanation:
The Mortgage Disclosure Improvement Act (MDIA) seeks to inform consumers about the costs and terms of their mortgage loan. It requires lenders to provide borrowers with clear and accurate information about their mortgage loan, including the interest rate, monthly payments, and any other fees or charges associated with the loan.
By providing this information, the MDIA helps consumers make informed decisions about their mortgage, understand the financial implications of the loan, and compare different loan offers from different lenders.
Additionally, the MDIA aims to protect consumers from predatory lending practices by requiring lenders to assess the borrower's ability to repay the loan and prohibiting certain practices that could lead to foreclosure, such as balloon payments or negative amortization.