Written By: Jinkook Lee and Jeanne M. Hogarth

The Truth in Lending Act (TILA) and the Real Estate Procedures Act (RESPA) promote informed consumer decision making in mortgage markets, primarily through disclosure of information. The effectiveness of currently provided information under TILA and RESPA was examined using the 1995 Federal Reserve’s Survey of Consumer Finances. Specifically, we investigated the relationships between consumers’ extent of search and the annual percentage rate (APR) of primary mortgages. Increased search paid off for refinancers, but not for other financers. Key words: Mortgage loans, Credit, Decision making, Information search, Survey of Consumer Finances

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