Which regulation mandates the disclosure of the Annual Percentage Rate (APR)?

The regulation that mandates the disclosure of the Annual Percentage Rate (APR) is the Truth in Lending Act (TILA). TILA was enacted to promote the informed use of credit by requiring disclosures about its terms and costs. One of its key provisions is the requirement for lenders to disclose the APR, which represents the total cost of borrowing expressed as a yearly interest rate. This allows consumers to compare different lending options more effectively, ensuring they can make informed decisions regarding credit offers.

In contrast, the other options do not address APR disclosure requirements. The Flood Disaster Protection Act primarily deals with flood insurance requirements for properties in designated flood zones; the Fair Housing Act focuses on preventing discrimination in housing; and the Home Mortgage Disclosure Act (HMDA) is aimed at providing the public with data on mortgage lending and ensuring that lenders serve the housing needs of their communities. Each of these regulations serves an important purpose, but they do not stipulate the disclosure of the APR like TILA does.