What consumer protection law requires lenders to give borrowers advance notice of closing costs?

The Real Estate Settlement Procedures Act (RESPA) is the consumer protection law that mandates lenders to provide borrowers with advance notice of closing costs. This federal law was enacted to ensure that consumers receive timely and accurate information regarding the costs associated with their real estate transactions. RESPA aims to protect consumers from abusive practices and to help them make informed decisions when obtaining mortgage loans or other services related to real estate transactions.

Under RESPA, lenders must provide a Good Faith Estimate of settlement costs, allowing borrowers to see an itemized list of expected fees and expenses before the closing occurs. This helps buyers understand their financial obligations and compare costs between different lenders or settlement service providers.

The other laws mentioned in the options serve different purposes, such as the Truth in Lending Act, which focuses on the disclosure of credit terms and the costs associated with borrowing, and the Fair Housing Act, which prohibits discrimination in housing. The Consumer Credit Protection Act is a broader law aimed at protecting consumers in credit transactions. However, it is RESPA specifically that addresses the need for advance notice of closing costs in real estate transactions.