National Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the National Real Estate Exam with flashcards and multiple-choice questions featuring hints and answers. Master key topics to ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which types of loans does Regulation Z apply to?

Commercial loans only
All real estate credit transactions
Home equity loans only
Investment properties only

The correct answer is: All real estate credit transactions

Regulation Z, established under the Truth in Lending Act (TILA), is designed to protect consumers by requiring clear disclosure of the terms and costs associated with various types of credit. This regulation applies to a broad category of credit transactions and is not limited to a specific type of loan. When it comes to loans related to real estate, Regulation Z covers all real estate credit transactions, which include residential mortgages, home equity loans, and lines of credit. The goal is to ensure that borrowers receive necessary information to make informed financial decisions, which includes disclosure of interest rates, fees, and other key loan terms. In contrast, other options are more restrictive and do not encompass the range of loans that Regulation Z is intended to regulate. Regulation Z is designed to enhance transparency and promote responsible lending practices, making it crucial for all real estate credit transactions, rather than just specific types.