Which of the following acts governs the disclosure of settlement costs?

Which of the following acts governs the disclosure of settlement costs?

• A. Truth in Lending Act
• B. Fair Housing Act
• C. Real Estate Settlement Procedures Act
• D. Federal Reserved Act

Answer: (C)

The Real Estate Settlement Procedures Act (RESPA) governs the disclosure of settlement costs. This federal law was established to ensure that consumers are provided with important information regarding the costs associated with the settlement process when purchasing a home. RESPA mandates that lenders provide a Good Faith Estimate and a HUD-1 Settlement Statement, which outline the various settlement costs the buyer may incur. The intent behind RESPA is to promote transparency in the real estate transaction process, helping buyers understand what they are paying for and preventing any hidden costs associated with the settlement. This regulation plays a crucial role in protecting consumers and enhancing their ability to make informed decisions in real estate transactions.

The Real Estate Settlement Procedures Act (RESPA) governs the disclosure of settlement costs. This federal law was established to ensure that consumers are provided with important information regarding the costs associated with the settlement process when purchasing a home. RESPA mandates that lenders provide a Good Faith Estimate and a HUD-1 Settlement Statement, which outline the various settlement costs the buyer may incur. The intent behind RESPA is to promote transparency in the real estate transaction process, helping buyers understand what they are paying for and preventing any hidden costs associated with the settlement. This regulation plays a crucial role in protecting consumers and enhancing their ability to make informed decisions in real estate transactions.