Question

multiple choice question

bigtime mortgage company, a federally insured lender, neglects to provide a borrower with a good faith estimate of closing costs. this is a violation of:

• the consumer credit protection act
• respa
• regulation z
• the truth in lending act

Explanation:

Identify the core legal requirement

The question asks about a federally insured lender neglecting to provide a borrower with a "good faith estimate of closing costs" (GFE).

Analyze the options under federal law

The Real Estate Settlement Procedures Act (RESPA) is the federal statute that requires lenders to provide borrowers with a Good Faith Estimate (GFE) of settlement costs for federally related mortgage loans.

Determine the correct violation

Failing to provide this estimate is a direct violation of RESPA regulations.

Answer:

• The Consumer Credit Protection Act
• RESPA (Correct answer)
• Regulation Z
• The Truth in Lending Act