The Closing Disclosure (CD) is associated with which act?

The Closing Disclosure (CD) is associated with which act?

• A. RESPA
• B. TILA
• C. HOEPA
• D. None of the above

Answer: (A)

The Closing Disclosure is tied to RESPA because it is the standardized disclosure of settlement costs that RESPA requires. Under the TRID framework, which combines RESPA and TILA disclosures, the Closing Disclosure presents the final loan terms and all closing costs to the borrower in a clear, single document. It replaced the older HUD-1 and Final TIL to help borrowers compare loans and verify the numbers before closing, and it must be provided at least three business days prior to closing. While TILA-related provisions and HOEPA protections interact with mortgage disclosures, the form and requirement for the Closing Disclosure originate from RESPA.

The Closing Disclosure is tied to RESPA because it is the standardized disclosure of settlement costs that RESPA requires. Under the TRID framework, which combines RESPA and TILA disclosures, the Closing Disclosure presents the final loan terms and all closing costs to the borrower in a clear, single document. It replaced the older HUD-1 and Final TIL to help borrowers compare loans and verify the numbers before closing, and it must be provided at least three business days prior to closing. While TILA-related provisions and HOEPA protections interact with mortgage disclosures, the form and requirement for the Closing Disclosure originate from RESPA.