Which loans does Regulation Z apply to?

Regulation Z, which implements the Truth in Lending Act (TILA), primarily applies to loans that are extended to consumers for personal, family, or household purposes. This includes residential loans, such as mortgages for purchasing a home or refinancing existing home loans. The aim of Regulation Z is to ensure that consumers are fully informed about the costs and terms of credit.

The reason this answer is correct is that Regulation Z includes requirements such as clear disclosures of APR, finance charges, and the total costs of the loan, which are critical protections for consumers in residential lending scenarios. This regulation does not extend to commercial loans made to businesses, as those situations do not involve consumer protection standards aimed at individuals. Furthermore, while some specific loan programs like FHA loans must comply with multiple regulations, including Regulation Z, it is not exclusive to those loans but rather applies to a broader category of residential loans. Therefore, the correct context is that Regulation Z is focused on residential lending to individuals rather than all types of loans or only specific loan types like FHA loans.