What is the relationship between TILA and RESPA?

The relationship between the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) is characterized by the fact that each addresses different aspects of real estate transactions. TILA is primarily concerned with ensuring that consumers are provided with clear and comprehensive information about the terms and costs of credit, aiming to promote informed consumer choices and prevent deceptive lending practices. It requires lenders to disclose certain key information about their loan products, such as interest rates and terms.

On the other hand, RESPA focuses on the processes related to the settlement or closing of real estate transactions. It aims to provide consumers with information about settlement costs, prohibits certain practices like kickbacks, and ensures transparency in the handling of closing costs.

Thus, while both pieces of legislation apply to loans and aim to protect consumers, they operate in different realms of the transaction. TILA deals with the credit aspect of loans, whereas RESPA addresses the broader settlement process, illustrating how they complement each other within the real estate finance framework.