What act requires a Transfer of Service Disclosure?

The Real Estate Settlement Procedures Act (RESPA) is the legislation that requires a Transfer of Service Disclosure. This act was established to protect consumers by ensuring that they receive timely and accurate information regarding the real estate settlement process, including the servicing of their mortgage loans.

The Transfer of Service Disclosure specifically informs borrowers when their loan servicer has changed, ensuring they are aware of whom to contact for payments and other related inquiries moving forward. This transparency is crucial for maintaining clear communication with borrowers and helping them understand their rights and obligations regarding their mortgage.

In contrast, the other acts mentioned have different focuses. For example, the Truth-in-Lending Act primarily deals with the disclosure of credit terms and costs to consumers, the Equal Credit Opportunity Act is aimed at preventing discrimination in lending practices, and the Home Mortgage Disclosure Act focuses on providing the public with information about mortgage lending patterns. Each of these serves important functions, but they do not require a Transfer of Service Disclosure like RESPA does.