What is the primary purpose of the Truth in Lending Act (TILA)?

The primary purpose of the Truth in Lending Act (TILA) is to provide clear disclosures of loan terms. This legislation was enacted to ensure that borrowers fully understand the cost of credit and the terms associated with loans. By requiring lenders to present clear and standardized information regarding loan terms, interest rates, and other charges, TILA aims to foster transparency and facilitate informed decision-making by consumers. This level of clarity helps consumers compare different loan offers and select the most suitable option for their financial situation.

The other options relate to different aspects of financial regulation or housing issues, but they do not accurately capture the primary focus of TILA, which is specifically centered on disclosure and transparency in lending practices.