Final answer:
The Truth-In-Lending statement was replaced by new regulatory changes starting October 3, 2015, to enhance mortgage disclosure transparency, consumer protection, and compliance with various fair lending laws. Lenders must collect and report data on borrower ethnicity and race to monitor for discrimination, but this is optional for borrowers to furnish.
Step-by-step explanation:
Effective October 3, 2015, the Truth-In-Lending statement has been replaced as a part of significant government regulatory changes with regards to mortgage disclosures. These changes are designed to improve consumer understanding of the mortgage process, aid in comparison shopping, and help prevent surprises at the closing table. The Federal Government specifically requests information for government monitoring purposes to ensure compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws.
This initiative mandates lenders to collect data about the applicant's ethnicity and race and to do so in such a way that does not discriminate based on whether this information is provided. The lenders are encouraged but not required to collect this data, unless they observe it in person, in which case they must note it down. The aim is to have transparency and fairness in the mortgage lending industry.
As of the end of 2015, this new ruling is a milestone in terms of holding lenders accountable and offering borrowers more protection and clear information when making one of the biggest financial decisions of their lives, which is obtaining a mortgage for a dwelling.