Which disclosures are required by RESPA?

The correct choice emphasizes the importance of the Loan Estimate (LE) and the Affiliated Business Arrangement (AfBA) disclosures as required under the Real Estate Settlement Procedures Act (RESPA).

The Loan Estimate is crucial as it provides borrowers with clear and concise information about the terms of their loan, including interest rates, monthly payments, and closing costs, which empowers them to make informed decisions. This document must be provided to borrowers within three business days of their loan application, allowing them to compare offers from different lenders.

The Affiliated Business Arrangement disclosure, on the other hand, is necessary when there is a relationship between the provider of settlement services and the lender. This disclosure informs borrowers of any affiliations and potential conflicts of interest, ensuring transparency in the lending process.

Understanding these two key disclosures is essential for compliance with RESPA, which aims to promote informed consumer choices and eliminate abusive practices in the real estate settlement process. The other options provided do not encompass the essential RESPA-required disclosures effectively.