Which regulation requires lenders to provide good faith estimates of closing costs within three days of loan application?

The requirement for lenders to provide good faith estimates of closing costs within three days of a loan application is established by the Real Estate Settlement Procedures Act (RESPA). This regulation aims to ensure transparency in the costs involved in the mortgage transaction. By mandating that lenders disclose these estimated costs early in the loan process, consumers can make more informed decisions and compare different loan offers effectively.

RESPA was enacted to eliminate abusive practices in the real estate settlement process and to ensure that consumers receive information about the settlement process, including the total costs they can expect to incur. This requirement helps reduce the chances of surprise costs at the closing table, thereby promoting fair and informed transactions.

The other regulations listed, such as the Truth in Lending Act, the Equal Credit Opportunity Act, and the Home Mortgage Disclosure Act, address different aspects of the lending process, such as the disclosure of credit terms, anti-discrimination in lending, and reporting of mortgage data, respectively, but they do not specifically mandate the provision of good faith estimates within the three-day timeframe.