What is one of the requirements for good-faith estimates under RESPA?

One of the key requirements for good-faith estimates under the Real Estate Settlement Procedures Act (RESPA) is the provision of an estimate of closing costs within three days of applying for a loan. This requirement ensures transparency in the home buying process, allowing borrowers to understand the potential costs involved in their transactions early on. By providing this estimate promptly, lenders help consumers make informed decisions and compare the costs of different loan options. This proactive communication also serves to protect consumers from unexpected expenses at closing, fostering trust and clarity between lenders and borrowers. Compliance with this requirement is crucial for consumers to have an accurate understanding of the financial implications of their mortgage choices.