One of the laws that give homeowners the most protection against mortgage lending abuses is the Truth in Lending Act (TILA).
This act is designed to provide borrowers with adequate disclosures and to force lenders to make accurate disclosures of the cost of borrowing money. In many cases, if a mortgage company sells a loan to an investor or other lender, the new loan hold can still be held liable for any violations of the Act.
When homeowners are pushed into foreclosure, they may have a few remedies against mortgage servicing abuse under this law. Claims under the Truth in Lending Act can be powerful defenses to foreclosure.