Regulation Z

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

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

• Residential mortgage loans
• Refinances and home equity loans
• Home Equity Lines of Credit (HELOCs)
• Most consumer-purpose credit

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

• Applies to owner-occupied refinances
• Borrower has 3 business days to cancel
• Does not apply to purchase loans

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

• Regulation Z = TILA rules
• Focus on APR disclosure and 3-day rescission