Regulation “Z” has been around for a long time. The name is a little misleading, because it is not a single rule, but an entire section of code that stipulates required disclosures when offering credit to a borrowing consumer.
And although the law has been revised many times, (the latest changes went into effect July 1, 2010.) some of the very basic tenets that apply to real estate advertising still exist.
Simply stated, there are still certain “trigger” words, that when used in advertising, require complete disclosure of all of the terms of the loan. These trigger terms include:
If any of these words are used in any form of advertising, complete disclosure is required under law.
So I am usually more than a little irritated when I see a large sign in the front yard of a HUD home for sale that says “$100 DOWN” in huge letters. Why is the government immune from its own regulations?
It seems to me that the business of governing should be prosecuted without any hint of reproach. If the rule is indeed designed to protect consumers, then let’s protect them, fair and square.
Even if the government REALLY does need the money!
(Source of terms FDIC)
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