Free Pennsylvania Real Estate Practice Exam Practice Question
Which one of the following transactions is regulated by Regulation Z?
Correct Answer: B
Rationale: Regulation Z, part of the Truth in Lending Act, primarily governs consumer credit transactions, ensuring transparency in lending practices.
Option B is applicable as it involves a borrower obtaining a mortgage loan for a residential property, clearly falling under consumer lending regulations.
Option A is incorrect because it pertains to an investor, not a consumer, and thus is not regulated by Regulation Z.
Option C involves a business entity financing a vehicle, which is considered commercial credit and is outside the scope of Regulation Z.
Option D deals with a loan for commercial purposes, which also does not meet the consumer criteria required for Regulation Z oversight.
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