What constitutes a "material change" prompting a new Truth in Lending disclosure?

A "material change" prompting a new Truth in Lending disclosure is best defined by any significant alteration to the loan terms. This choice is accurate because Regulation Z specifies that any change that alters the borrower's substantive rights or obligations necessitates a new disclosure. Examples of significant changes include modifications to the interest rate, loan amount, or payment schedule.

In contrast, while changes in the lender's policies can affect the overall lending process, they do not directly pertain to the specifics of the loan terms provided to the borrower. A reduction in interest rates, although it may seem beneficial to the borrower, would typically still require evaluation of whether this constitutes a significant change affecting the terms of the loan. Minor adjustments in fees likely do not cross the threshold into material changes that require re-disclosure, as they may not substantially affect the cost or terms of the loan in a significant way. Thus, material changes specifically focus on alterations that impact the core conditions agreed upon in the loan.