Truth in Lending — 1996-01-30 [96-1651]

The Board is soliciting comment on whether the Truth in Lending Act cost disclosure and other rules for open-end home-secured lines of credit provide adequate consumer protections. The Riegle Community Development and Regulatory Improvement Act of 1994 directs the Board to submit a report to the Congress regarding this matter. Under present law, creditors offering open-end home-equity lending programs have to provide detailed disclosures at the time a consumer applies for a line of credit. The law also imposes specific substantive limitations on how these programs may be structured; however they are not subject to the type of disclosure and restrictions imposed by the Home Ownership and Equity Act of 1994 for closed-end credit.