What is one requirement of RESPA?

One requirement of the Real Estate Settlement Procedures Act (RESPA) is that a disclosure booklet must be provided to borrowers. This booklet, also known as the "Your Home Loan Toolkit," is designed to help consumers understand the mortgage process and make informed decisions. It provides crucial information about settlement costs, the mortgage application process, and borrowers' rights, ensuring transparency and helping individuals to navigate the complexities of obtaining a mortgage.

Other options are not established requirements under RESPA. While loan terms must indeed be disclosed, there is no stipulation for them to be communicated verbally; they are typically documented in writing. Verification of borrower income is part of the lender's due diligence but is not a specific requirement under RESPA. Similarly, property appraisals being conducted bi-annually is not a requirement mandated by RESPA; appraisal practices are governed by different regulations. Thus, the requirement for a disclosure booklet stands out as a fundamental component of RESPA, ensuring consumer protection and understanding in real estate transactions.