Which regulation is designed to enhance consumer understanding of mortgage loan costs?

The regulation that is specifically designed to enhance consumer understanding of mortgage loan costs is the Truth in Lending Act. This act requires lenders to provide clear and understandable information about the costs of borrowing money, allowing consumers to compare different loan offers and make informed decisions.

The Truth in Lending Act mandates lenders to disclose the annual percentage rate (APR), finance charges, and other relevant information related to the credit transaction. This transparency is crucial in helping consumers grasp the full cost of a mortgage, including interest rates and additional fees.

While the Real Estate Settlement Procedures Act also requires certain disclosures about settlement costs and protects consumers from abusive practices, it is primarily focused on the closing process rather than the overall understanding of loan costs throughout the life of the mortgage. The other options, such as the Fair Credit Reporting Act and the Home Mortgage Disclosure Act, serve different purposes related to credit reporting and monitoring lending practices, rather than directly enhancing consumer understanding of mortgage loan costs.