Truth-Len ding Act Effective Tuesday: Waiting Period Explained
may provide evidence that, despite todayÛªs high mortgage in-' terest rates, the cost of home financing is a credit bargain.</br></br>ÛÏIt "will show that on an annual percentage basis, home loans cost substantially less than most other forms of credit available to American consumers,Û said Norman Strunk, executive vice president of the U.S. Savings and Loan League.</br></br>Savings associations are the Nation's biggest mortgage lenders. The League, nationwide trade group for the business, has been busy preparing materials on the ActÛªs application to real estate loans for itsÛ÷ member institutions.</br></br>The Act takes effect Tuesday. Under the Federal Reserve BoardÛªs Regulation Z which implements the law, all consumer credit transactions are covered, including home mortgages to individuals, except those where loan proceeds are used for business or commercial purposes. It does not cover loans to organizations, including corporations, trusts, estates, partnerships and cooperatives.</br></br>Strunk said ail information required under Truth-dn-Lend-ing will be included on one additional form to be used when a mortgage loan is obtained. He noted that much of this information had already ing lenders to state the loanÛªs total financing charges but this must be provided in all other loans made by thrift institutions under the Act.