Which regulation deals specifically with closing costs and settlement procedures?

RESPA, or the Real Estate Settlement Procedures Act, specifically addresses closing costs and settlement procedures in real estate transactions. It was enacted to ensure transparency in the settlement process for consumers, requiring that they receive detailed information about the costs associated with closing a mortgage loan. This includes the disclosure of settlement services and the prohibition of kickbacks and referral fees that can increase the cost of real estate transactions.

Through RESPA, consumers are informed about the various fees involved, such as title insurance, appraisal fees, and closing agent fees, enhancing their ability to shop around for the best services and prices. This regulation aims to minimize unnecessary costs and improve the overall understanding of the settlement process, leading to more informed decision-making by buyers and sellers.

The other options pertain to different aspects of real estate finance. TILA (Truth in Lending Act) focuses primarily on making sure consumers are informed about the costs of borrowing through disclosure of interest rates and finance charges. The SAFE Act (Secure and Fair Enforcement for Mortgage Licensing Act) governs the licensing and registration of loan originators. Regulation Z is the implementing regulation for TILA and does not specifically focus on closing costs or settlement procedures. Thus, RESPA is the key regulation that directly deals with these important aspects of real estate