Is it true that loans secured by personal property used as a principal dwelling are subject to Regulation Z?

Regulation Z, also known as the Truth in Lending Act (TILA), applies to a wide range of consumer credit transactions, particularly those that involve loans secured by personal property. When the personal property is the principal dwelling of the borrower, these loans fall under the purview of Regulation Z. This regulation aims to promote informed use of consumer credit by requiring clear disclosures about the terms and costs of lending.

The regulation mandates that lenders provide borrowers with detailed information about the loan, including the annual percentage rate (APR), terms of repayment, and total costs of the credit. This requirement ensures that consumers understand the financial obligations they are committing to, especially when their home or similar principal dwelling is at stake.

In essence, since loans secured by personal property used as a principal dwelling are indeed covered by Regulation Z, this makes the statement true. It reflects the emphasis on consumer protection within the lending process, ensuring transparency and fairness in terms offered to borrowers.