Which regulation requires clear disclosures about loan costs to consumers?

The Truth in Lending Act is the regulation that mandates clear and transparent disclosures regarding the costs associated with loan agreements to consumers. This act ensures that borrowers receive important information about the terms and conditions of their loans in a straightforward manner, making it easier for them to understand the costs involved, including interest rates, finance charges, and the total amount of payments. This focus on transparency helps consumers make informed decisions when obtaining credit, thereby promoting fair lending practices.

The other regulations in the list serve different purposes. The Real Estate Settlement Procedures Act addresses issues related to the settlement process for residential real estate transactions, including requirements for disclosures during the settlement and closing phases. The Equal Credit Opportunity Act focuses on preventing discrimination in credit transactions, ensuring that all consumers have an equal opportunity to obtain credit. The Home Mortgage Disclosure Act requires financial institutions to provide information about their mortgage lending activity to help identify discriminatory lending patterns. While all these laws promote consumer protection and transparency in financial transactions, the Truth in Lending Act specifically targets the clarity of loan cost disclosures.