Which regulation requires Loan Estimates for most consumer purpose loans secured by a dwelling?

The requirement for Loan Estimates for most consumer-purpose loans secured by a dwelling is established by the Truth in Lending Act (TILA). This regulation aims to promote informed use of consumer credit by requiring disclosures about its terms and costs. Specifically, TILA mandates that creditors provide a Loan Estimate to borrowers within three business days after receiving a loan application. This document outlines important information about the loan, including the estimated interest rate, monthly payments, and total closing costs, which helps borrowers compare different loan offers and make informed decisions.

While the Real Estate Settlement Procedures Act (RESPA) also deals with disclosures related to the closing of residential real estate transactions, its focus is primarily on settlement costs and procedures rather than the broader loan details covered under TILA. The other options listed, like High-Priced Mortgage Loans (HPML) and Adjustable Rate Mortgages (ARM), are more specific types of loans or provisions that fall under the umbrella of TILA and do not serve as the overarching regulation requiring Loan Estimates. Therefore, TILA is the correct choice as it directly mandates the issuance of Loan Estimates for consumer-purpose loans secured by a dwelling.