Which act requires lenders to provide borrowers with a Good Faith Estimate?

The Real Estate Settlement Procedures Act (RESPA) requires lenders to provide borrowers with a Good Faith Estimate (GFE). This document outlines the estimated costs associated with the settlement and serves to inform the borrower about the fees and terms they can expect during the mortgage process. The intent of providing the GFE is to promote transparency and ensure that borrowers can make informed decisions regarding their real estate transactions.

RESPA was established to protect consumers in the home-buying process by eliminating hidden fees and allowing borrowers to compare costs from different lenders. This helps to create a level playing field in the lending market.

This focus on transparency and borrower awareness is what makes the Real Estate Settlement Procedures Act the correct answer in this context. Other acts mentioned, such as the Gramm-Leach Bliley Act, the Equal Credit Opportunity Act, and the Home Mortgage Disclosure Act, serve different purposes related to financial privacy, preventing discrimination in lending, and requiring lenders to disclose lending patterns, respectively.