Which act is also referred to as Regulation Z?

The Truth in Lending Act (TILA) is indeed referred to as Regulation Z. TILA was enacted to promote informed use of credit by requiring clear disclosure of key terms of the lending arrangement and all costs. Regulation Z is the specific regulation that implements TILA, outlining the specific requirements for disclosures that lenders must provide to borrowers. This includes the Annual Percentage Rate (APR), finance charges, and the total of payments, ensuring that consumers have the information they need to compare credit terms effectively.

Understanding that TILA-Regulation Z focuses on consumer protection is crucial for Mortgage Loan Originators, as it emphasizes transparency in the lending process. Other acts like the Federal Housing Administration (FHA) primarily deal with insurance programs for housing, the Equal Credit Opportunity Act (ECOA) addresses discrimination in lending practices, and the Real Estate Settlement Procedures Act (RESPA) focuses on information disclosure relating to the settlement process. While all of these acts play significant roles in real estate and lending, only TILA is directly associated with Regulation Z, making it the correct choice.