Which regulation involves the disclosure of loan costs and terms?

The regulation that involves the disclosure of loan costs and terms is Regulation Z. This regulation, implemented under the Truth in Lending Act (TILA), is designed to ensure that consumers are provided with clear and comprehensible information about the costs and terms associated with borrowing.

Regulation Z mandates that lenders disclose vital information, such as the annual percentage rate (APR), finance charges, and the total amount financed, enabling borrowers to make informed decisions. This transparency helps consumers compare different loan offers and understand their financial obligations, ensuring they are not misled about the costs associated with their loans.

The other regulations mentioned focus on different aspects of lending. Regulation M addresses truth in leasing, Regulation B deals with equal credit opportunity to prevent discrimination in lending practices, and Regulation C pertains to the Home Mortgage Disclosure Act (HMDA) which requires financial institutions to provide data regarding their mortgage lending activities. Each regulation serves a distinct purpose, but when it comes to the disclosure of loan costs and terms specifically, Regulation Z is the applicable standard.