Questions and Answers
Exactly which transactions are subject to the home equity disclosure rules of Regulation Z?
The home equity disclosure rules that appear in section 5b of Regulation Z apply to open-end credit that is secured by the consumer's dwelling. Notice that the phrase is "consumer's dwelling," not "consumer's principal dwelling." The home equity rules will apply to open-end credit secured by any dwelling owned by the consumer, regardless of whether or not it is the consumer's principal dwelling.
Also notice that the rules apply only to open-end credit, and not to closed-end credit.
(Posted: 04/25/2008)
