Which regulation requires additional disclosures if the APR changes significantly after the loan estimate is provided?

The correct answer is Regulation Z, which implements the Truth in Lending Act (TILA). Regulation Z is responsible for ensuring that consumers receive clear and accurate information regarding the cost of credit, which includes the annual percentage rate (APR) associated with loans.

When a loan estimate is provided to a borrower, it includes the APR, and if there are significant changes to this rate before closing, Regulation Z mandates that the lender must provide updated disclosures to the borrower. This requirement is in place to protect consumers, ensuring they are fully informed about the terms of their loan and can make accurately informed decisions. The intent is to enhance transparency and prevent any misleading practices regarding loan costs.

Other regulations mentioned, like RESPA (the Real Estate Settlement Procedures Act), primarily deal with the settlement process and require disclosures regarding settlement costs, but they do not specifically address changes in APR. While TILA is the overarching law under which Regulation Z was created, the specific authority for requiring disclosures when the APR changes comes from Regulation Z itself. HPML (High-Priced Mortgage Loans) relates to loans with rates above certain thresholds and involves additional protections for borrowers but does not govern the general requirements related to APR changes.