Drafting consumer loan agreements that comply with Truth in Lending Act requirements is time-consuming and error-prone. Financial institutions must carefully calculate and disclose APR, finance charges, and payment schedules while ensuring every regulatory element is properly formatted and legally accurate. Manual drafting increases the risk of compliance violations that can result in costly penalties and regulatory scrutiny.
Creating consumer loan agreements that comply with Truth in Lending Act requirements is complex and time-consuming. Manual drafting requires precise APR calculations, properly formatted disclosure boxes, and coordination of federal and state requirements, leaving room for costly compliance errors. Legal teams spend hours ensuring every disclosure meets Regulation Z standards while maintaining enforceable contract terms.
CaseMark automates the entire consumer loan agreement drafting process with built-in TILA compliance. Our AI extracts loan terms from your documents, performs accurate APR calculations, generates properly formatted federal disclosure boxes, and produces complete, enforceable agreements ready for execution. Every agreement includes all required notices, state-specific provisions, and regulatory safeguards.
This workflow is applicable across multiple practice areas and use cases
This workflow directly generates TILA-compliant consumer loan agreements, which are core transactional documents in loan and financing practice areas.
Loan and financing attorneys regularly draft consumer loan agreements and need TILA compliance, making this workflow essential for their transactional practice.
Residential real estate closings require TILA-compliant mortgage and loan agreements for home purchases, refinancing, and home equity loans.
Residential real estate attorneys regularly prepare or review consumer loan documents for mortgage transactions, making TILA compliance critical to their practice.
Commercial real estate transactions often involve consumer financing for smaller properties or owner-occupied buildings requiring TILA-compliant loan documentation.
Real estate attorneys handling purchase financing need compliant loan agreements, particularly for transactions involving individual borrowers or small business owners.
Corporate finance attorneys advising small business lenders and consumer finance companies need to structure TILA-compliant loan products and documentation.
Corporate finance practices serving lending institutions require expertise in consumer loan compliance to structure financing products and ensure regulatory adherence.
CaseMark follows the exact disclosure requirements of the Truth in Lending Act (15 U.S.C. § 1601) and Regulation Z (12 CFR Part 1026). The system automatically generates properly formatted disclosure boxes with all required elements, calculates APR using the actuarial method within regulatory tolerance levels, and includes mandatory federal notices. Every agreement is structured to present disclosures conspicuously before contractual terms, exactly as federal law requires.
Yes, CaseMark adapts to various consumer loan structures including secured loans with collateral descriptions and UCC security interests, unsecured personal loans, installment loans with regular payment schedules, and loans with balloon payments or irregular terms. The system automatically includes appropriate provisions for collateral, insurance requirements, repossession rights, and payment application based on your loan structure. Simply provide the loan terms and collateral information in your source documents.
CaseMark calculates APR using the methodology prescribed by Regulation Z, ensuring accuracy within the required tolerance thresholds (typically one-eighth of one percentage point for regular transactions). The system computes the total finance charge by aggregating all interest, fees, points, and charges that must be included under TILA, then calculates the APR based on the relationship between the finance charge and amount financed over the loan term. All calculations are verified for mathematical accuracy before inclusion in the disclosure box.
Yes, CaseMark incorporates state law variations including additional disclosure requirements, interest rate limitations, prepayment penalty restrictions, and mandatory notices. The system prompts you to provide any state-specific requirements in your source documents and integrates them into the agreement. This includes state-mandated cure period notices, repossession warnings, and other consumer protection provisions that vary by jurisdiction, ensuring comprehensive compliance with both federal and state law.
You need to provide the principal loan amount, interest rate, payment schedule (amount and frequency), loan term, and complete borrower information including legal names and addresses. For secured loans, include collateral descriptions with identifying information like VIN or property legal descriptions. Also provide your lending institution's complete legal name and address, any fees or charges, and prepayment or late charge policies. CaseMark extracts this information from your uploaded documents and uses it to generate all required disclosures and contractual provisions.