The purpose of __________ is to promote the informed use of consumer credit by requiring disclosures about its terms and cost.

The purpose of the Truth in Lending Act (TILA) is indeed to promote the informed use of consumer credit by requiring disclosures about its terms and costs. TILA mandates lenders to disclose critical information, such as the Annual Percentage Rate (APR), total costs of borrowing, and other key loan terms. This is essential for consumers, as it allows them to compare different credit offers and understand the financial implications of their borrowing, fostering transparency and competition among lenders.

TILA serves to protect consumers from unfair lending practices and ensures they have the necessary information to make informed decisions. By requiring clear and standardized disclosures, TILA helps consumers comprehend the true cost of credit and the terms associated with it, thereby promoting responsible borrowing and lending practices.

Other options, while relevant to different aspects of real estate finance, do not focus specifically on consumer credit disclosures. The Real Estate Settlement Procedures Act (RESPA) relates to settlement services and the closing process, the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE) focuses on mortgage licensing and regulation, and the HUD-1 form is used for detailing the costs associated with settlement in real estate transactions. None of these are directly aimed at the general disclosure of consumer credit terms and costs in the manner that TILA is.