Which regulation implements the Truth in Lending Act (TILA)?

The Truth in Lending Act (TILA) is implemented by Regulation Z. Regulation Z is a key regulation that governs the disclosure of credit terms and the costs of borrowing to consumers. It is designed to ensure that consumers are provided with clear and comprehensible information about the terms of loans and credit offers, enabling them to make informed decisions.

Regulation Z covers various aspects of lending, including the requirement for lenders to provide a written disclosure of the annual percentage rate (APR), the total costs of the loan, and other key terms. This transparency helps protect consumers from potentially misleading or deceptive lending practices, aligning with the objectives of TILA. Other regulations like Regulation X focus on the Real Estate Settlement Procedures Act (RESPA) and do not cover TILA. Thus, understanding the distinct roles of these regulations is important in the context of mortgage compliance training.