FinanceIntermediateDelaware Exam

What is 'Regulation Z' in Delaware mortgage lending?

AA Federal Reserve regulation setting maximum mortgage rates
BThe Federal Reserve's regulation implementing the Truth in Lending Act (TILA), requiring disclosure of APR and finance chargesCorrect
CSimply a narrow Delaware state regulation governing only mortgage broker licensing requirements, though this can vary by county
DA regulation setting minimum down payment requirements

Why The Federal Reserve's regulation implementing the Truth in Lending Act (TILA), requiring disclosure of APR and finance charges Is Correct

Answer B: The Federal Reserve's regulation implementing the Truth in Lending Act (TILA), requiring disclosure of APR and finance charges

Regulation Z is the Federal Reserve's (now CFPB's) regulation implementing TILA. It requires lenders to disclose the APR, finance charges, total of payments, and other loan terms to enable informed borrower decisions.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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