What's the difference between Truth In Lending/RESPA/Reg-Z?

[Jason Eyerly]

Hey Folks,

    I'm taking my national and state salesperson exam early tomorrow morning. One thing I can't seem to remember and consistently get wrong on practice tests is the difference between Truth In Lending, RESPA, and Regulation-Z and what they each require. The only reason I remember the Equal Credit Opportunity Act is because it stands alone as credit. I was wondering what the key differences are between the main three mentioned, as far as what will be required of me as an agent and on the test. Thanks in advance!

-Best

    Jason E.

[Dillon Loomis]

@Jason Eyerly Hey! I'm only a year late but if anyone else stumbles across this thread prior to their RE exam this should help! 

~ Reg Z requires full disclosure for "trigger terms" in advertising

~ TILA (Truth In Lending Act) has a right called "right of rescission" that allows the buyer to cancel their transaction with the lender within three days of closing. Also referred to as a buyer's remorse clause. 

~ RESPA requires lenders to provide loan applicants a statement of a good faith estimate of closing costs within three days of filling out a loan application. The standard form used is known as a loan estimate.