Truth in Lending (Regulation Z); Consumer Protections for Home Sales Financed Under Contracts for Deed
Abstract
This advisory opinion affirms the current applicability of consumer protections and creditor obligations under the Truth in Lending Act (TILA) and its implementing Regulation Z to transactions in which a consumer purchases a home under a "contract for deed." When a creditor sells a home to a buyer under a contract for deed, that transaction will generally meet TILA and Regulation Z's definition of credit. Where the transaction is secured by the buyer's dwelling, the buyer will also generally be entitled to the protections associated with residential mortgage loans under TILA.
Federal Register Source
This document is published by the Office of the Federal Register, National Archives and Records Administration. Access the full regulatory text, preamble, and docket comments below.
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Frequently Asked Questions
What is the 2024-18620 Federal Register document?
Document 2024-18620 is a Final Rule published by the Consumer Financial Protection Bureau in the Federal Register on August 23, 2024. This advisory opinion affirms the current applicability of consumer protections and creditor obligations under the Truth in Lending Act (TILA) and its implementing Regulation Z to transactions in which a consumer purchases a home under a "contract for deed." When a creditor sells a home to a buyer under a contract for deed, that transaction will generally meet TILA and Regulation Z's definition of credit. Where the transaction is secured by the buyer's dwelling, the buyer will also generally be entitled to the protections associated with residential mortgage loans under TILA. View the original at https://www.federalregister.gov/documents/2024/08/23/2024-18620/truth-in-lending-regulation-z-consumer-protections-for-home-sales-financed-under-contracts-for-deed.
Is document 2024-18620 an economically significant rule?
No. Document 2024-18620 is not classified as economically significant under Executive Order 12866. Economically significant rules require OIRA review and are estimated to have impacts of $100 million or more per year.