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The use of a Uniform Settlement Statement when preparing a closing, is a requirement of:

A. Federal Fair Housing law
B. GNMA
C. Regulation Z
D. RESPA

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User OAH
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1 Answer

4 votes

Final answer:

The use of a Uniform Settlement Statement during a real estate transaction closing is mandated by RESPA to ensure transparency in all associated costs. This requirement allows comprehension and comparison of settlement services for buyers and sellers.

Step-by-step explanation:

The use of a Uniform Settlement Statement when preparing a closing is a requirement of D. RESPA, which stands for the Real Estate Settlement Procedures Act. This act requires that a standardized settlement statement, also known as a HUD-1 statement, is used during the closing process of a real estate transaction to outline all of the costs for both the buyer and seller.

It's important to note that the Federal Fair Housing law is focused on preventing discrimination in the buying, selling, renting or financing of housing. The law ensures fair treatment without regard to race, color, religion, sex, disability, familial status, or national origin.

The Uniform Settlement Statement is specifically designed to ensure consumers are provided with pertinent information regarding the costs associated with the transaction, facilitating transparency and allowing for clear comparison of settlement services and fees should they choose to shop around.

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