The purpose of __________ is to promote the informed use of consumer credit by requiring disclosures about its terms and cost.

The correct answer is TILA, which stands for the Truth in Lending Act. TILA was enacted to ensure that consumers are provided with clear and accurate information about the terms and costs associated with borrowing. This includes details such as the annual percentage rate (APR), any associated fees, and the total cost of financing. By mandating these disclosures, TILA aims to promote transparency in lending practices, allowing consumers to make informed decisions regarding their credit options.

The other options serve different purposes: RESPA, or the Real Estate Settlement Procedures Act, focuses on the disclosure of settlement costs in real estate transactions; SAFE, the Secure and Fair Enforcement for Mortgage Licensing Act, is aimed at enhancing consumer protection and reducing fraud by establishing standards for licensing mortgage loan originators; and the HUD-1 statement is a document that outlines the fees and costs associated with closing a mortgage loan, but it is not the overarching legislation that promotes informed use of credit in the same way TILA does.