What are the primary disclosures required by RESPA for a mortgage loan?

The primary disclosures required by the Real Estate Settlement Procedures Act (RESPA) for a mortgage loan are the Loan Estimate and the Closing Disclosure.

The Loan Estimate is provided to the borrower shortly after applying for a mortgage and outlines key terms of the loan, including estimated interest rates, monthly payments, and closing costs. This disclosure is crucial because it allows borrowers to compare loan offers and understand their financial obligations before committing.

The Closing Disclosure is given to the borrower at least three days before closing on the mortgage. It provides a comprehensive summary of the loan terms, closing costs, and other important financial details pertaining to the transaction. This transparency is vital to ensuring that borrowers are fully informed about their mortgage terms before finalizing the purchase.

The other options listed do not represent the primary disclosures mandated by RESPA. A Credit Report and Insurance Disclosure may be relevant documents in the mortgage process, but they are not required by RESPA. Similarly, a Pre-Approval Letter and Loan Agreement are important, but they do not fall under the mandatory disclosures established by RESPA guidelines. Home Inspection Reports and Title Insurance are also essential elements of the home purchasing process but are not specifically required disclosures under RESPA. Thus, the correct choice highlights the key disclosures intended to protect consumers