Final answer:
The mortgage lender is complying with the Home Mortgage Disclosure Act (HMDA).
Step-by-step explanation:
The mortgage lender providing a good faith estimate of closing costs and a special booklet that meets HUD requirements is complying with the Home Mortgage Disclosure Act (HMDA).
The HMDA is a federal law that requires certain financial institutions, including mortgage lenders, to collect and report data about their mortgage lending activities. It aims to ensure transparency and prevent discrimination in lending practices.
The lender's compliance with the HMDA helps protect borrowers by providing them with important information about their loans and promoting fair lending practices.