Affinity Real Estate and Mortgage Services Practice Exam 2026 – Comprehensive Test Prep

Regulation Z is the correct answer because it implements the Truth in Lending Act (TILA), which provides consumers with important disclosures about the cost of credit and establishes certain consumer protection rights. One key element of Regulation Z is the right of rescission, which allows borrowers to cancel certain types of loans—specifically home equity loans and refinances—within three business days after signing the loan agreement. This right is designed to give consumers a safety net, allowing them to reconsider their decision and ensure that they fully understand the terms of the loan before it becomes binding.

Regulation B focuses on prohibiting discrimination in lending, while Regulation X relates to the Real Estate Settlement Procedures Act (RESPA), which deals primarily with disclosures related to settlement costs and processes. Title VIII, also known as the Fair Housing Act, addresses discrimination in housing but does not pertain to the right of rescission. Thus, the best choice that reflects the regulation ensuring borrowers have the right of rescission is indeed Regulation Z.