Which section of RESPA pertains to servicing disclosure requirements?

The correct answer pertains to Section 6 of the Real Estate Settlement Procedures Act (RESPA), which specifically addresses the servicing of mortgage loans and the disclosure of related information to borrowers. This section mandates that lenders provide borrowers with information about loan servicing, including the transfer of loan servicing rights and the identity of the servicer, along with the nature of the services provided. This is crucial because it ensures that borrowers are informed about who is managing their loan and where to send payments, which helps facilitate effective communication and resolution of any servicing issues that may arise.

Additionally, Section 6 includes requirements for loan servicers to provide timely responses to borrower inquiries and to maintain accurate records, thereby enhancing consumer protection in mortgage servicing. The focus of this section is to improve transparency and accountability in loan servicing practices, which is a fundamental aspect of consumer protection in the mortgage industry.

In contrast, the other sections mentioned pertain to different aspects of the mortgage process. For example, Section 4 deals with the requirement of providing a Good Faith Estimate of settlement costs. Section 8 addresses prohibitions against kickbacks and fee-splitting in real estate transactions, while Section 10 focuses on the regulation of escrow accounts and the limits on the amount that may be collected for these