 TITLE: What Is Regulation Z and How Does It Protect Borrowers? CONTENT: How Regulation Z Protects You With Mortgages\n--------------------------------------------\nThe primary way the regulation protects consumers during the mortgage process is by eliminating a conflict of interest for mortgage brokers.\nMore specifically, mortgage lenders aren't allowed to change a broker's fee based on the terms of the loan—which means brokers can't increase their commission check by pushing homebuyers to borrow more money or take on a loan with unfavorable terms.\nAs a result, borrowers can work with a broker they know won't get a kickback and will work with the homebuyer's best interests in mind.\nRegulation Z also requires mortgage lenders to provide borrowers with a written disclosure of rates, fees and other finance charges. Plus, if you have an adjustable-rate mortgage, they're required to let you know in advance if your rate will be changing. END