Which regulation governs the disclosures related to servicing mortgage loans?

The Real Estate Settlement Procedures Act (RESPA) governs the disclosures related to servicing mortgage loans. This regulation was established to ensure transparency in the real estate settlement process, providing borrowers with critical information about the costs and services involved in their mortgage transactions.

RESPA mandates specific disclosures that servicers must provide to borrowers, including information about the loan servicing, escrow accounts, and any potential changes to the loan terms. This oversight helps borrowers understand their rights and the servicing details of their mortgage, ensuring they are aware of who is managing their loan, how to make payments, and any fees that might be associated with their mortgage servicing.

By focusing on issues of disclosure and borrower awareness, RESPA plays a crucial role in consumer protection within the mortgage industry, helping to prevent practices that could harm borrowers, such as undisclosed fees or unclear servicing policies.

This context helps to highlight the importance of RESPA in ensuring that borrowers have all the necessary information concerning the servicing of their mortgage loans, distinguishing it from other regulations like the Truth in Lending Act or the Home Mortgage Disclosure Act, which focus on different aspects of the lending process.