# Truth in Lending
> **US Federal Reserve System** · Final rule; official staff commentary. · Published 2010-09-24 · Effective 2011-04-01 · 75 FR 58509
## Document
- **Document number:** 2010-22161
- **Category:** final-rule
- **Agency:** US Federal Reserve System
- **Federal Register citation:** 75 FR 58509
- **CFR reference:** 12 CFR 226
- **Publication date:** 2010-09-24
- **Effective date:** 2011-04-01
## Abstract

The Board is publishing final rules amending Regulation Z, which implements the Truth in Lending Act and Home Ownership and Equity Protection Act. The purpose of the final rule is to protect consumers in the mortgage market from unfair or abusive lending practices that can arise from certain loan originator compensation practices, while preserving responsible lending and sustainable homeownership. The final rule prohibits payments to loan originators, which includes mortgage brokers and loan officers, based on the terms or conditions of the transaction other than the amount of credit extended. The final rule further prohibits any person other than the consumer from paying compensation to a loan originator in a transaction where the consumer pays the loan originator directly. The Board is also finalizing the rule that prohibits loan originators from steering consumers to consummate a loan not in their interest based on the fact that the loan originator will receive greater compensation for such loan. The final rules apply to closed-end transactions secured by a dwelling where the creditor receives a loan application on or after April 1, 2011.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2010/09/24/2010-22161/truth-in-lending)
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