Question

RESPA requires the following disclosure at settlement:

-the final Good Faith Estimate with all charges since application
-the HUD-1 Settlement Statement
-an initial escrow statement at closing or within 45 days of closing
-b & c

Answer 1

RESPA requires disclosure of the final Good Faith Estimate, HUD-1 Settlement Statement, and an initial escrow statement during settlement. It also involves the collection of voluntary Government Monitoring Information to ensure compliance with fair lending laws.

Step-by-step explanation:

The Real Estate Settlement Procedures Act (RESPA) stipulates several requirements for the disclosure of information at the time of settlement. Among the mandatory items to be disclosed are:

• The final Good Faith Estimate shows all charges that have accrued since the loan application was made.
• The HUD-1 Settlement Statement, provides a detailed list of incoming and outgoing funds for both buyer and seller during the settlement process.
• An initial escrow statement must be provided at closing or no later than 45 days after closing. This statement details how the escrow funds will be used to pay for property taxes and home insurance, thereby streamlining the payment process for the homeowner.

In addition to these requirements, lenders are also encouraged to collect Government Monitoring Information (GMI) as part of efforts to comply with equal credit opportunity, fair housing, and home mortgage disclosure laws. Borrowers are asked to voluntarily provide their ethnicity and race, but whether they choose to provide this information or not does not influence the lender's decision.