Which items are the key disclosures under RESPA?

Which items are the key disclosures under RESPA?

• A. Loan Estimate (LE), Closing Disclosure (CD), Servicing Transfer Notice, Escrow Account Statement
• B. APR, Finance Charge, Amount Financed
• C. Interest Rate, Amortization Schedule
• D. Appraisal Report, Title Insurance

Answer: (A)

Under RESPA, the emphasis is on informing consumers about settlement costs and how the loan will be serviced. The key disclosures are the Loan Estimate, which lays out expected costs and loan terms early in the process; the Closing Disclosure, which provides the final, line-by-line costs before closing; the Servicing Transfer Notice, which tells you if the loan will be serviced by another company (or has been transferred); and the Escrow Account Statement, an annual statement showing how your escrow funds are being managed for taxes and insurance. These items together reflect RESPA’s goal of transparency in settlement costs and servicing. The other options mix disclosures from different laws or concern loan details rather than mandated RESPA disclosures. APR, Finance Charge, and Amount Financed are primarily Truth in Lending Act (TILA) disclosures. Interest Rate and Amortization Schedule describe loan terms but aren’t RESPA-required disclosures. Appraisal Report and Title Insurance are important closing items but not the core RESPA disclosures.

Under RESPA, the emphasis is on informing consumers about settlement costs and how the loan will be serviced. The key disclosures are the Loan Estimate, which lays out expected costs and loan terms early in the process; the Closing Disclosure, which provides the final, line-by-line costs before closing; the Servicing Transfer Notice, which tells you if the loan will be serviced by another company (or has been transferred); and the Escrow Account Statement, an annual statement showing how your escrow funds are being managed for taxes and insurance. These items together reflect RESPA’s goal of transparency in settlement costs and servicing.

The other options mix disclosures from different laws or concern loan details rather than mandated RESPA disclosures. APR, Finance Charge, and Amount Financed are primarily Truth in Lending Act (TILA) disclosures. Interest Rate and Amortization Schedule describe loan terms but aren’t RESPA-required disclosures. Appraisal Report and Title Insurance are important closing items but not the core RESPA disclosures.