CFPBFinal RuleDecember 15, 2025

Truth in Lending (Regulation Z)

Finance & Banking

Summary

This regulation updates rules that require lenders to clearly explain the true cost of borrowing money, including interest rates and fees. The changes make it easier for consumers to understand and compare loans, credit cards, and mortgages so they can make better financial decisions.

Key Points

1Lenders must disclose all costs of borrowing in a clear, standardized format so consumers can easily understand what they're paying
2The rule applies to credit cards, mortgages, auto loans, and other consumer loans offered by banks and financial institutions
3Consumers can now more easily compare loan offers from different lenders to find the best deal
4Lenders who fail to provide clear disclosures or hide fees may face penalties and lawsuits from consumers
5This update modernizes rules that have been in place for decades to address new lending products and digital platforms

Impact Assessment

If you are a consumer, this means lenders must present loan costs and terms in clearer, easier-to-compare formats so you can better understand what you're actually paying before you borrow.

Impact Level

Significant

Geographic Scope

National

Compliance Cost

Moderate

Who is Affected

Financial InstitutionsConsumersHomeowners

Key Dates

Published

December 15, 2025

Regulatory Connections

Authorized By

Truth in Lending Act 15 U.S.C. § 1601 et seq.

Amends CFR Sections

12 CFR Part 1026

Other Documents in This Rulemaking (CFPB-2025-0001)

CFPBFinance & Banking

Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold

CFPBFinance & Banking

Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold

CFPBHousing

Appraisals for Higher-Priced Mortgage Loans Exemption Threshold

CFPBFinance & Banking

Fair Credit Reporting Act Disclosures

View all 11 documents →

Read on Federal Register View Docket

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.