Which Federal law primarily governs truth in advertising for mortgage loans?

The Truth in Lending Act (TILA) is the federal law that primarily governs truth in advertising for mortgage loans. This legislation was enacted to promote informed use of credit by requiring disclosures about its terms and cost. TILA aims to provide borrowers with clear information regarding the true cost of borrowing, ensuring they can make educated decisions when comparing different loan offers.

This law mandates that lenders provide standardized disclosures that include key information such as the annual percentage rate (APR), financing charges, and the total amount financed. It also requires lenders to disclose the terms of the loan clearly and in a manner that is easy for potential borrowers to understand, effectively preventing deceptive advertising practices.

In contrast, the Equal Credit Opportunity Act focuses on preventing discrimination in lending based on race, color, religion, national origin, sex, marital status, or age, rather than on advertising disclosures. The Real Estate Settlement Procedures Act addresses issues related to settlement costs and procedures in real estate transactions but does not specifically pertain to truth in advertising. The Securities Exchange Act regulates the trade of securities among public companies, which is unrelated to mortgage loan advertising.

Therefore, TILA is the correct answer as it specifically targets the transparency and clarity of mortgage loan advertisements.