What type of loans does Regulation Z specifically cover?

Regulation Z, part of the Truth in Lending Act, specifically addresses consumer protection in lending practices, particularly regarding the disclosure of terms and costs associated with various loan types. The focus of Regulation Z is primarily on loans that are intended for personal, family, or household purposes.

Owner-occupied single-family house loans fall directly within the scope of Regulation Z because these loans are used to finance homes that consumers will occupy as their primary residences. The regulation mandates lenders to provide clear and comprehensive information about the costs and terms of these loans to ensure that borrowers can make informed decisions.

While commercial property loans and investment property loans may involve other regulations or disclosures, they are not covered under Regulation Z to the same extent. Regulation Z is particularly concerned with consumer transparency and protection, which is why it emphasizes loans for owner-occupied residences. This focus on residential loans helps to safeguard individual consumers against deceptive lending practices.