Under federal law and Regulation Z, a lender may not:

Under federal law and Regulation Z, a lender may not instruct borrowers that they are required to select a provider of title services from the lender's list. This regulation is part of the broader Truth in Lending Act, which aims to promote transparency and fairness in lending practices.

By prohibiting lenders from mandating that borrowers use a specific provider from the lender’s list, Regulation Z ensures that consumers have the freedom to choose their own service providers and can seek competitive offers that may lead to better quality or lower prices for the services they need. This safeguards the borrowers’ rights and promotes an open market for title services.

While bundling services or offering gifts can be part of marketing strategies, these practices must comply with certain regulations and cannot be coercive. High fees for title services are also subject to regulatory scrutiny, but the specific focus of this question under Regulation Z emphasizes the right of borrowers to choose their service providers freely.