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Federal laws set standards for mortgage lending. A home mortgage is one of the largest credit transactions a consumer can make, and that opens the door for all sorts of issues. In the past, lenders have misled consumers about mortgage loans. Some lenders denied loans based on discrimination. Other lenders hid the truth about mortgage loan terms, including interest rates and closing costs. To address a variety of issues, the federal government enacted a series of key mortgage lending laws.
Consumer lending includes secured and unsecured loan types, according to the USLegal website. Secured consumer lending includes financing backed by collateral. Home, cars and boats are common personal property items purchased through consumer loans. These are secured loans because the consumer puts the property up as collateral to gain access to the financing or to get better rates and terms.