Mortgage Discrimination

Mortgage discrimination is prohibited by federal law. The Equal Credit Opportunity Act and the Fair Housing Act are federal laws that prohibit discrimination when a person applies for a mortgage to purchase, refinance, or make home improvements.

The Truth in Lending Act - Advertising Consumer Credit - Closed-End Credit and Buydowns

Under the Truth in Lending Act, special rules apply to advertisements for loans in which the seller or a third party "buys down" the interest rate during the early years of the loan. Such ads may show the reduced simple interest rate or rates applicable during the buydown period.

Magnuson-Moss Warranty Act - Informal Dispute Resolution Mechanisms

The Magnuson-Moss Warranty Act permits warranty provisions that require consumers to participate in an informal dispute resolution mechanism before filing a lawsuit to enforce a warranty claim. By permitting such provisions, the Act attempts to encourage the quick and inexpensive resolution of warranty disputes.

What Is Alternative Dispute Resolution?

Alternative Dispute Resolution (ADR) refers to a spectrum of mechanisms available for resolving disputes. In recent years, different forms of ADR have gained wide acceptance as a better approach to resolving disputes, as opposed to litigation.

The Truth in Lending Act - Advertising Consumer Credit - Closed-End Credit and Payment or Effective Rates

In some transactions, particularly some graduated payment loans, the consumer's payments for the first few years of the loan may be based on an interest rate that is lower than the rate for which the consumer is liable. This is called "negative amortization."