A person making loans on owner-occupied residential property fewer than how many times a year is exempt from Regulation Z?

Regulation Z, which implements the Truth in Lending Act, provides consumer protections by requiring lenders to give clear and accurate information about the terms and costs of loans. It specifically addresses the conditions under which lenders must comply with these regulations.

For a person who makes loans on owner-occupied residential properties, they are exempt from Regulation Z if they extend credit fewer than six times in a calendar year. This provision is designed to differentiate between individuals or entities engaged in regular lending activities and those who only engage in occasional lending. By setting this threshold, the regulation aims to streamline the compliance burden for individuals who are not in the business of lending but may occasionally provide loans to friends or family within a limited scope.

This exemption allows small-scale lenders to operate without the extensive requirements that come with being classified as a creditor under Regulation Z, which could include disclosures and certain consumer protections that may not be practical for infrequent lenders. The threshold of six is particularly relevant, distinguishing between occasional lending and more formalized, ongoing lending practices.

Thus, understanding this threshold is crucial for anyone involved in real estate lending, as it helps identify when regulatory compliance is necessary based on the frequency of loans made.