Question

RESPA requires all except:

A. Closing Disclosure given to buyer.
B. Closing Disclosure given to seller.
C. Voluntary collection of data about race.
D. "Loan Tool Kit"given to the borrower no later than three days from the date of the application for purchases.

Answer 1

RESPA does not require the voluntary collection of data about race option (c). The other options listed, including providing Closing Disclosures and a "Loan Toolkit" to the appropriate parties, are indeed mandated by RESPA.

Step-by-step explanation:

The Real Estate Settlement Procedures Act (RESPA) outlines requirements for the disclosure and handling of real estate transactions. Among the various mandates, RESPA does not require voluntary collection of data about race; however, it does stipulate that for certain types of loans, lenders are encouraged, but not mandated, to collect information on ethnicity and race to ensure compliance with equal credit opportunity and fair housing laws.

This information helps monitor for discriminatory lending practices, although applicants are not obligated to provide it. So, to address the student's question, the option that RESPA does not require is option C.

Voluntary collection of data about race. Other requirements such as providing a Closing Disclosure to both the buyer and seller, and delivering a "Loan Estimate" and "Loan Toolkit" to the borrower within three days of a loan application, are part of RESPA's required procedures.