Which information must be disclosed under Regulation Z?

The correct answer is that the loan terms, including the Annual Percentage Rate (APR) and the total cost of credit, must be disclosed under Regulation Z. This regulation is part of the Truth in Lending Act (TILA) and aims to promote informed use of consumer credit by requiring clear and conspicuous disclosures of key terms of credit agreements.

Disclosing the APR allows borrowers to understand the true cost of borrowing, as it incorporates both the interest rate and any additional costs associated with the loan, presented as an annualized percentage. Additionally, the total cost of credit provides borrowers with a comprehensive view of what they will ultimately pay over the life of the loan, which helps them make informed decisions when comparing offers from different lenders.

In contrast, personal history of the borrower, the property appraisal value, and the lender's credit rating are not required disclosures under Regulation Z. While these factors may play a role in the lending process, Regulation Z focuses specifically on the transparency of loan terms and the overall cost of credit for consumers. Thus, the emphasis is placed on providing clear and understandable information that impacts the borrower's ability to evaluate and compare credit options effectively.