Which federal law requires loan officers to provide borrowers with a Good Faith Estimate (GFE)?

The federal law that mandates loan officers to provide borrowers with a Good Faith Estimate (GFE) is the Real Estate Settlement Procedures Act (RESPA). RESPA was enacted to help consumers better understand the costs involved in the home buying process. It requires lenders to offer a GFE to inform potential borrowers of the estimated costs associated with their mortgage loan and related services. This estimate helps borrowers compare costs between different lenders and understand their financial obligations before closing on a loan.

The other options pertain to different aspects of loan and housing regulations but do not specifically address the requirement to provide a GFE. The Dodd-Frank Act implemented many reforms in the financial sector, but it does not directly require a GFE; rather, it enhanced RESPA's provisions. The Fair Housing Act focuses on preventing discrimination in housing and lending practices. The Home Mortgage Disclosure Act requires financial institutions to report information about mortgage applications but is not concerned with providing good faith estimates to borrowers.