Which of the following is required by the Truth in Lending Act (TILA)?

The Truth in Lending Act (TILA) was enacted to promote informed use of consumer credit by requiring disclosures about its terms and cost. Therefore, the disclosure of loan terms and costs is a fundamental requirement under TILA. This ensures that borrowers fully understand the costs associated with borrowing, including the annual percentage rate (APR), finance charges, and other related fees.

By mandating that lenders provide clear and accurate information, TILA helps consumers make more informed decisions about borrowing, enhances competition among lenders, and ultimately contributes to greater transparency in the lending process. The requirement for disclosure is critical to protecting consumers from deceptive lending practices.

Other aspects mentioned, such as setting a maximum interest rate, providing a grace period for late payments, and assessing property values, are not mandated by TILA. These elements may be part of different regulations or guidelines but are not central to the disclosures required by the Truth in Lending Act.