What type of disclosure is required by the RESPA?

The Good Faith Estimate (GFE) is a type of disclosure that was specifically required by the Real Estate Settlement Procedures Act (RESPA). RESPA is designed to help consumers understand the costs associated with the settlement process and ensure transparency in the mortgage lending process. The GFE provides borrowers with an estimate of the closing costs they can expect to pay, including various fees, which aids in comparing the costs of different loans from various lenders.

Although the Loan Estimate (LE) also serves a similar purpose in informing borrowers about loan terms and estimated costs, it is actually a requirement stemming from the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) integrated disclosure (TRID) regulations introduced more recently. The GFE, in contrast, was primarily associated with earlier practices under RESPA before these changes were made.

The Truth in Lending Disclosure (TIL) and the Annual Percentage Rate (APR) disclosure are related to TILA and address different aspects of loan terms and costs, rather than the specific requirements under RESPA. Therefore, the GFE is the correct answer in the context of disclosures specifically mandated by RESPA.