Is it accurate that high-cost home equity loans fall under Regulation Z?

High-cost home equity loans indeed fall under Regulation Z. Regulation Z implements the Truth in Lending Act, which aims to promote informed use of consumer credit by requiring disclosures about its terms and costs. These high-cost loans, often characterized by their additional fees and interest rates that exceed certain thresholds, are subject to specific disclosure requirements under Regulation Z to ensure borrowers have a clear understanding of the total cost of the credit they are receiving.

Regulation Z outlines its applicability to various types of credit transactions, including those involving home equity loans. The rules are designed to protect consumers from predatory lending practices by requiring lenders to provide clear, upfront information regarding the costs associated with these loans. By applying to high-cost home equity loans, Regulation Z helps potential borrowers make more informed financial decisions, ensuring they are aware of the consequences of entering into such agreements.

The other options may express conditions or limitations that do not align with the broader scope of Regulation Z, which explicitly encompasses all high-cost home equity loans without specific criteria such as APR limits or the requirement of mortgage insurance.