What does TILA (Reg. Z) primarily regulate?

TILA, or the Truth in Lending Act, primarily focuses on promoting transparency and ensuring that consumers are fully informed about the terms and costs associated with borrowing. One of the central aspects it regulates is the disclosure of interest rates and finance charges related to credit products, including mortgages. This regulation ensures that borrowers receive clear and understandable information about the total cost of credit, including the annual percentage rate (APR), which reflects the true cost of borrowing over the life of the loan.

By mandating standardized disclosures, TILA helps consumers make informed decisions and compare different credit offers effectively. This transparency is vital for consumer protection and helps prevent deceptive lending practices.

In contrast, options related to home appraisal fees, loan origination costs, and property tax assessments do not fall under TILA’s scope of regulation. Home appraisal fees are typically part of the overall mortgage transaction but are not specifically governed by TILA’s disclosure requirements. Loan origination costs, while relevant to mortgage transactions, are not the primary focus of TILA, as it is more concerned with interest rates and total finance charges. Property tax assessments are entirely separate from TILA's purpose, which centers around credit disclosures.