====== Regulation Z ======

**Regulation Z** is the federal regulation that **implements the [[Truth in Lending Act]] (TILA)** and governs **disclosure requirements** for consumer credit transactions.

===== Purpose =====
  * Promote **informed use of credit**
  * Ensure **clear and uniform disclosure** of loan terms
  * Protect consumers from **unfair lending practices**

===== Transactions Covered =====
  * Residential mortgage loans
  * Refinances and home equity loans
  * [[Home Equity Lines of Credit]] (HELOCs)
  * Most **consumer-purpose credit**

===== Required Disclosures =====
  * **Annual Percentage Rate (APR)**
  * Finance charge
  * Amount financed
  * Total of payments
  * Payment schedule
  * Variable-rate disclosures (if applicable)

===== Right of Rescission =====
  * Applies to **owner-occupied refinances**
  * Borrower has **3 business days** to cancel
  * Does **not** apply to purchase loans

===== Relationship to TILA =====
  * **TILA** is the law
  * **Regulation Z** provides the detailed rules and procedures
  * Enforced by the **Consumer Financial Protection Bureau (CFPB)**

===== Exam Tip =====
  * Regulation Z = **TILA rules**
  * Focus on **APR disclosure** and **3-day rescission**