Virginia Real Estate Exam Practice Question
Which document does RESPA require that provides all of the actual settlement costs to borrowers in a federally related residential mortgage transaction?
Correct Answer: A
Rationale: The Closing Disclosure is the document mandated by RESPA that details all actual settlement costs for borrowers in federally related residential mortgage transactions. It ensures transparency by providing a comprehensive breakdown of fees and charges prior to closing.
The Consumer Notice (B) is not a requirement under RESPA and does not provide detailed cost information. The Loan Estimate (C) is provided earlier in the process to give borrowers an estimate of costs but does not reflect actual charges. The MLS Affidavit to Consumers (D) is unrelated to settlement costs and serves a different purpose in real estate transactions.
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