What is required under the Real Estate Settlement Procedures Act (RESPA)?

The requirement for the disclosure of closing costs under the Real Estate Settlement Procedures Act (RESPA) is essential for ensuring transparency in the home buying process. RESPA mandates that lenders provide borrowers with a clear estimate of the closing costs associated with a mortgage loan. This includes detailed information about the fees that will be charged at settlement, such as loan origination fees, title insurance, appraisal fees, and other costs related to the transaction.

The purpose of this requirement is to help consumers understand the full financial implications of their mortgage loan and to prevent any hidden fees that could arise at closing. By providing an upfront disclosure, RESPA aims to empower borrowers with the necessary information to compare different loan offers and make informed decisions regarding their mortgage options.

The other options relate to different aspects of mortgage lending but are not specifically mandated by RESPA in the same way as the disclosure of closing costs.