What information must be clearly stated regarding assumptions in a mortgage under Regulation Z?

Under Regulation Z, there is a specific requirement to clearly disclose whether a mortgage loan can be assumed by another borrower and, if so, the terms under which this assumption can occur. This is crucial because it directly impacts the buyer's ability to take over the mortgage in the future, which can affect the marketability of the property and the borrower's financial planning.

Understanding the terms of assumptions helps potential buyers and sellers navigate the process more effectively, offering transparency in what they can expect if they want to transfer the mortgage obligation. This aligns with Regulation Z's overarching goal of ensuring that consumers are provided with clear and accurate information regarding loan terms and conditions, enabling them to make informed financial decisions.

The other options, while potentially relevant to various aspects of mortgage loans, do not directly address the specific disclosure requirements regarding loan assumptions under Regulation Z.