What type of disclosure does RESPA require creditors to provide customers at the time of mortgage loan closing?

The correct answer is the closing disclosure, which is a critical document in the mortgage loan process. Under the Real Estate Settlement Procedures Act (RESPA), creditors are required to provide the closing disclosure to borrowers at least three business days before the closing of a mortgage loan. This document outlines the final terms and costs associated with the mortgage, ensuring borrowers have a clear understanding of what they are agreeing to before the transaction is finalized.

The closing disclosure contains detailed information about the loan's terms, interest rates, and all the closing costs associated with the transaction. It is designed to prevent any surprises at closing and to promote transparency in the lending process. By reviewing this disclosure, borrowers can verify that the terms of the loan match what they were initially offered and understand their financial commitments.

Other documents mentioned, such as the loan estimate, are provided earlier in the process, typically within three days of loan application, to give borrowers an estimate of the costs associated with the mortgage. The mortgage servicing disclosure statement informs borrowers about the possibility of their loan being sold and any servicing options available. Lastly, the settlement costs booklet provides borrowers with general information about the settlement process and typical costs, but these are not specific to the final numbers pertaining to a particular loan. Thus, while these