What federal law requires closing agents to use the uniform settlement statement form?

The correct answer is based on the Real Estate Settlement Procedures Act (RESPA). This federal law was established to protect consumers by ensuring they receive information about the costs associated with their real estate transactions. One key aspect of RESPA is that it mandates the use of the uniform settlement statement, which is often referred to as the HUD-1 form. This form provides a comprehensive breakdown of all the costs and fees involved in the closing of a residential real estate transaction, giving consumers a clearer understanding of their financial obligations.

RESPA specifically aims to eliminate undisclosed kickbacks and referral fees in real estate transactions, promoting transparency and fairness. By requiring closing agents to use the uniform settlement statement, RESPA ensures that borrowers are aware of what they are paying for and can compare loan offers more effectively.

The other choices pertain to different regulations. The Truth in Lending Act (TILA) focuses on disclosing the terms and costs of borrowing, the Home Ownership and Equity Protection Act (HOEPA) regulates high-cost mortgages, and the Fair Debt Collection Practices Act (FDCPA) addresses the practices of debt collectors. While all of these laws play a role in the broader context of real estate and consumer protection, they do not require the specific usage of the uniform settlement