Finance

Which federal law prohibits lenders from charging excessive fees for settlement services and requires disclosure of kickbacks?

ATILA (Truth in Lending Act)
BRESPA (Real Estate Settlement Procedures Act)✓ Correct
CECOA (Equal Credit Opportunity Act)
DHMDA (Home Mortgage Disclosure Act)

Explanation

RESPA prohibits kickbacks and referral fees between settlement service providers and requires disclosure of affiliated business arrangements. It protects consumers from unnecessarily high settlement costs.

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