An advertisement that promotes home purchase loans with only 1% down must comply with which regulation?

The appropriate regulation that governs advertisements for home purchase loans, especially those highlighting specific down payment amounts, is the Truth in Lending Act (TILA). This act requires that lenders provide clear and concise information about the terms and costs associated with a loan, including interest rates, terms of repayment, and the total cost of the loan.

When an advertisement specifies a low down payment of 1%, it triggers TILA's requirements for disclosure of additional terms and conditions that might apply. This ensures that potential borrowers are well-informed and able to compare the true cost of loans, making more educated financial decisions. The act aims to promote informed choices and prevent misleading advertisements in the lending marketplace.

In contrast, while the other options address important aspects of housing and lending laws, they serve different purposes. The Fair Housing Act focuses on preventing discrimination in housing, the Equal Credit Opportunity Act prohibits discriminatory lending practices, and the Home Mortgage Disclosure Act requires lenders to report on their mortgage lending activities. However, these regulations do not specifically address the advertising practices and disclosure requirements related to loan terms provided under TILA.