The act of providing consumers the right to review loan settlement costs is a feature of which act?

• A. The Fair Housing Act
• B. The Real Estate Settlement Procedures Act (RESPA)
• C. The Real Property Act
• D. The Consumer Protection Act

Answer: (B)

The correct answer is the Real Estate Settlement Procedures Act (RESPA) because this federal law was specifically designed to protect consumers in the real estate settlement process. RESPA ensures that consumers have the right to receive detailed information about the costs associated with their loans.

Under RESPA, lenders are required to provide a Good Faith Estimate (GFE) of loan settlement costs, allowing borrowers to understand the various fees involved, such as those for appraisal, inspection, and closing. This transparency is fundamental to enabling consumers to make informed decisions regarding their real estate purchase and financing options.

In contrast, the Fair Housing Act focuses on eliminating discrimination in housing, the Real Property Act is not specifically related to loan settlements and deals more generally with property rights, and the Consumer Protection Act addresses a broader range of consumer rights and practices but does not specifically target real estate settlement costs. Therefore, RESPA is clearly the act that provides consumers the right to review loan settlement costs.