Bankers Compliance Group | The Banking Community's Foremost Resource For Legal Services | BCG
deposit slip bank sign credit union mortgage loan loan application
Today is: April 25, 2024  

Compliance Companion®
Standard Procedures Manuals (SPM)

Truth in Lending Act & Regulation Z February 2024

This Manual serves as a comprehensive resource for compliance professionals, credit administrators, loan officers and loan documentation specialists regarding all aspects of the Truth in Lending Act and Regulation Z. The text of this Manual is 1,269 pages, plus 126 pages of appendixes.

Part One of SPM #18 includes a summary of recent developments during 2022-2024,including the 2024 adjustments to various thresholds under Regulation Z (such as the asset threshold for small creditor QM and the Section 1026.3(b) coverage exemption threshold), the CFPB’s proposed rule that would apply ability-to-repay (ATR) requirements to Property Assessed Clean Energy (PACE) transactions, and a glossary of defined terms under Regulation Z..

Part Two discusses general compliance requirements that affect both closed-end and open-end credit, including:

  • Regulation Z’s coverage and exemption rules
  • Determining what is and is not a finance charge
  • Record retention requirements
  • APR and finance charge tolerances
  • Liability provisions under TILA (including a creditor’s liability for actual and statutory damages, assignee liability and the various statutes of limitations)
  • How to take corrective action (to cure a Regulation Z violation)
Part Three provides detailed discussions of Regulation Z’s closed-end credit requirements, including (i) the form, timing, and contents of the TIL disclosure statement provided at consummation for non-TRID loans, (ii) early disclosure rules for reverse mortgages subject to RESPA and the applicable waiting periods, (iii) the TRID rule, (iv) construction loan disclosures under Appendix D and the TRID rule, (v) right of rescission, (vi) private education loans, (vii) advertising requirements, and (viii) reverse mortgage transactions. Part Three also provides:
  • In-depth discussions of the fundamentals regarding the TILA/RESPA Integrated Disclosure (TRID) Rule, the page-by-page contents of the Loan Estimate and the Closing Disclosure, including a discussion of TRID 2.0 and how the TRID Rule applies to construction loans.
  • Detailed discussion of transitioning variable-rate consumer loan products from the former LIBOR index (gone as of June 2023) to a new replacement index, such as the FRB-selected SOFR index.
  • Details regarding the ability-to-repay rule, higher-priced mortgages under Section 1026.35, high-cost mortgage (HOEPA) loans under Section 1026.32, mortgage servicing rules (including periodic statements for mortgage loans), ARM transactions, and loan originator compensation and qualification requirements.
Part Four explains the open-end (revolving) credit requirements under Regulation Z, explaining the requirements governing:
  • Account-opening disclosures
  • Periodic statements
  • Right of rescission
  • Home equity lines of credit
  • Special credit card rules under Section 1026.12 (such as the restrictions on the unsolicited issuance of credit cards, liability of cardholders for unauthorized use, and the right of cardholders to assert claims or defenses against card issuers)
  • Advertising requirements
  • Billing error resolution procedures
  • Complicated requirements regarding open-end change-in-terms notices
  • Special rules that apply only to credit card accounts
  • Special rules that apply to all types of open-end credit offered to college students
  • Application of Regulation Z to hybrid prepaid-credit cards


Compliance Companion

For information regarding online subscriptions to Compliance Companion®, contact or call 949-553-0909.

Compliance Companion® is a one-stop regulatory compliance resource for financial institutions. This online compilation of 19 industry-leading compliance manuals, including SPM #18, Truth in Lending Act & Regulation Z, takes the legalese out of federal and California laws and regulations, making it easier to understand and keep up with ongoing compliance developments.

Published by Aldrich & Bonnefin, PLC, Compliance Companion® has many useful features including search capabilities, links to internal cross-references and web-based sources, as well as samples of dozens of forms, disclosures and notices.

This compliance resource can also be accessed from your mobile device, making it faster and easier to get the latest information on federal and California laws and regulations governing financial institutions.

Back to List of Manuals

SPM 18

* Janet Bonnefin is retired from the practice of law with the firm.
| Home | Contact | Sitemap | Disclaimer |
Copyright © 2024 Aldrich & Bonnefin, PLC* - All Rights Reserved