Loan Officer Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

The section of Regulation Z that outlines requirements for loans meeting higher-priced mortgage loan criteria is indeed Section 35. This section was established to provide specific protections for borrowers who may be taking on loans with higher interest rates, which can often be associated with increased risks. It includes provisions regarding disclosures, appraisals, and certain prohibitions aimed at protecting consumers from unfair practices.

Section 35 addresses the unique challenges faced by these borrowers and ensures that they are fully informed about the costs and terms associated with their loans. Moreover, it also lays out additional requirements for lenders to help safeguard against predatory lending practices, emphasizing the need for transparency and fairness in the lending process.

In contrast, the other sections mentioned (32, 30, and 28) do not specifically address higher-priced mortgage loans and focus on different aspects of lending regulations or consumer protection. Therefore, Section 35 is the relevant section for understanding the requirements surrounding higher-priced mortgage loans under Regulation Z.