Under which regulation must lenders provide borrowers with information regarding the cost of credit?

The correct choice is indeed related to TILA, which stands for the Truth in Lending Act. This regulation is designed to promote informed use of consumer credit by requiring disclosures about its terms and costs. Lenders are obligated to provide borrowers with clear and understandable information regarding the cost of credit, including interest rates, annual percentage rates (APRs), and other associated fees.

This requirement helps borrowers make informed decisions by enhancing transparency and ensuring they fully understand the financial terms of their borrowing agreements. TILA's emphasis on clear disclosure is crucial as it seeks to protect consumers from deceptive lending practices.

The other regulations mentioned serve different purposes. RESPA (Real Estate Settlement Procedures Act) mainly focuses on the disclosure of settlement costs and ensuring that buyers receive information about the costs associated with their mortgage. ECOA (Equal Credit Opportunity Act) ensures that all consumers are given equal access to credit without discrimination. HMDA (Home Mortgage Disclosure Act) primarily requires lenders to provide data on mortgage applications to promote fair lending practices and assess how well financial institutions serve their communities. Each regulation plays a unique role in the overall framework of consumer protection in lending, but TILA specifically addresses the requirement to inform borrowers about the costs of credit.