The Real Estate Settlement Procedures Act (RESPA)is a federal law that requires federally chartered or insured lenders to provide buyers and sellers with expectations of their closing costs prior to the closing date.When a borrower (the buyer)applies for a loan,the lender will provide him/her with which of the following forms that includes details pertaining to specific loan information and an estimate of expenses that the borrower is likely to incur at the closing?
A)Uniform Settlement Statement (HUD-1)form
B)Good-faith estimate
C)Settlement Costs and You booklet
D)Certificate of occupancy

Question

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The form that the lender will provide is the Good-faith estimate. This form will include details regarding specific loan information (such as interest rate, terms, etc.) and an estimate of expenses that the borrower is likely to incur at closing. The Uniform Settlement Statement (HUD-1) form is used at closing to detail all of the actual expenses incurred by both the buyer and seller. The Settlement Costs and You booklet is a resource provided by the Consumer Financial Protection Bureau (CFPB) to help buyers understand the closing process and associated costs. The Certificate of occupancy is a document that is issued by a local government (usually a building department) and certifies that a newly constructed or renovated building complies with all applicable codes and is safe for occupancy.

The Real Estate Settlement Procedures Act (RESPA)is a Federal Law