Under Regulation Z, which party is primarily responsible for providing disclosures to the borrower?

Under Regulation Z, the lender has the primary responsibility for providing disclosures to the borrower. This regulation is designed to ensure that consumers receive clear and accurate information regarding the terms and conditions of credit. The lender must provide various disclosures, including the Truth in Lending Disclosure Statement, which outlines the annual percentage rate (APR), finance charges, payment schedule, and other key terms of the loan.

Disclosures are essential because they empower borrowers with the information needed to compare different lending options and make informed financial decisions. The lender's obligation to provide these disclosures helps to promote transparency and protect consumers from deceptive practices.

Other parties, such as the borrower or credit reporting agencies, have different roles in the lending process. The borrower typically provides information and documentation for the application but is not responsible for the disclosures. Meanwhile, credit reporting agencies provide the credit history and scores of borrowers but do not have a duty to disclose loan terms. The state regulatory bodies oversee compliance but do not directly provide disclosures to borrowers. This framework ensures that the responsibility of disclosure lies with the entities that create and manage the lending products, thereby facilitating accountability and clarity in consumer lending.