Which act specifically relates to the disclosure of affiliated business arrangements?

The Real Estate Settlement Procedures Act (RESPA) is the legislation that specifically addresses the disclosure of affiliated business arrangements. Under RESPA, when a settlement service provider refers a borrower to an affiliated business—such as a title company or mortgage lender—there is a requirement for that provider to disclose their relationship to the borrower. This disclosure ensures that the borrower is informed of any potential conflicts of interest and can make better-informed financial decisions.

RESPA aims to promote transparency in real estate transactions, thus protecting consumers from unnecessary costs and ensuring they understand any affiliations that could influence the professionalism and integrity of the services being offered. This act also outlines other requirements and prohibits certain practices, such as kickbacks, which can affect the cost of the settlement process.

Other acts, while they deal with consumer protection in various forms, do not specifically focus on the disclosure of affiliated business arrangements in the way that RESPA does. The Truth-In-Lending Act primarily addresses the disclosure of credit terms and costs associated with borrowing. The Fair Housing Act is focused on preventing discrimination in housing-related activities. The Consumer Financial Protection Act establishes the framework for the Consumer Financial Protection Bureau but does not specifically pertain to affiliated business arrangements.