Which of the following is a requirement for the closing disclosure?

The closing disclosure must include the final estimated costs associated with the loan transaction. This requirement is crucial because it provides borrowers with a clear picture of their financial obligations prior to closing. The disclosure details all loan costs, including the loan amount, interest rate, monthly payments, and any closing costs. By consolidating all this information in one document, borrowers can review and understand the complete financial picture before committing to the mortgage, ensuring they are aware of what to expect on the day of closing.

Additionally, the accurate reporting of final estimated costs helps borrowers compare these expenses with those given in earlier estimates, enabling them to identify any significant changes and understand the reasons for those changes. This transparency is a key component of the consumer protection goals established under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA).