Final answer:
RESPA requires a borrower to receive a closing disclosure three days before closing and a loan estimate three days after applying for a loan, along with an informational booklet about closing charges. Option a.
Step-by-step explanation:
The Real Estate Settlement Procedures Act (RESPA) sets forth several requirements for lenders to ensure fairness and transparency in the real estate settlement process. One of these requirements is that a borrower must be provided a completed closing disclosure at least 3 days prior to closing, ensuring they have time to review the final terms.
Another RESPA mandate is that lenders are to provide a loan estimate of settlement costs no later than 3 days after the borrower applies for a mortgage loan. Additionally, lenders need to supply an information booklet to loan applicants, explaining the various closing charges involved in the transaction.
However, while RESPA does prohibit kickbacks and rebates in any transaction, it does not prohibit them outright. Instead, it prohibits unearned fees and kickbacks that increase the cost of settlement services.
Therefore, the statement 'prohibits all kickbacks and rebates on any transaction' is not entirely true as it suggests an absolute prohibition rather than the context-specific restrictions imposed by RESPA. Option a.