Regulation Z (Truth in Lending)
Regulation Z (12 CFR 1026) implements TILA: uniform credit cost disclosure (APR, finance charges), 3-day right of rescission (refinances/HELOCs, NOT purchases), ability-to-repay verification, and QM standards. Advertising rules: no misleading claims. If disclosures missing: rescission extends to 3 years. Section 32: high-cost mortgage protections. CFPB enforces.
Key Provisions
- APR: true cost comparison
- Finance charge, total payments
- Advertising: no misleading claims
Right of Rescission
- 3 business days for refi/HELOC
- NOT for purchase mortgages
- Missing disclosures: 3-year extension
Ability to Repay
- Income, assets, employment, credit
- QM safe harbor/rebuttable presumption
- Section 32: high-cost protections
Related Terms
- Mortgage — Property financing
Barnes Walker Real Estate
Barnes Walker’s attorneys ensure TILA/Reg Z compliance. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC