Final answer:
Under the Truth In Lending Act, banks must disclose loan terms such as the APR, total loan costs, and must also adhere to consumer protection laws that prevent discrimination and require public disclosure of loan distribution data.
Step-by-step explanation:
Under the Truth In Lending Act, there are specific requirements for banks and other financial institutions regarding the disclosure of loan details. The institutions must provide clear and accurate information to consumers about the terms and conditions of the loan.
This includes disclosing the annual percentage rate (APR), the terms of the loan, and the total costs to the borrower. The act ensures that consumers are well-informed about the financial commitments they are undertaking.
Banks are also obliged to adhere to strict consumer protection laws. For example, they cannot discriminate against loan applicants based on age, race, sex, or marital status.
They must also publicly disclose information regarding their loan distributions for house purchases, which includes geographic distribution and the demographics of loan applicants, such as race and sex.