Which federal regulation requires certain disclosures regarding insurance for loans?

The requirement for certain disclosures regarding insurance for loans is primarily governed by the Real Estate Settlement Procedures Act (RESPA). RESPA aims to provide homebuyers and mortgage borrowers with information about the real estate settlement process, including what costs they can expect to incur. It mandates disclosures that cover various aspects of settlement services, including insurance.

Under RESPA, lenders must provide a Good Faith Estimate (GFE) of settlement charges and a HUD-1 Settlement Statement that outlines all costs associated with the loan. This includes any information related to insurance, such as mortgage insurance, which lenders are required to disclose upfront so that borrowers can make informed decisions about their financing.

In contrast, the other options focus on different aspects of the lending and real estate process. The Truth in Lending Act primarily deals with the disclosure of the cost of credit, while the Mortgage Disclosure Improvement Act focuses on improving the timing and clarity of mortgage disclosures. The Equal Credit Opportunity Act prohibits discrimination in lending practices but does not specifically address insurance disclosures. Therefore, RESPA is the correct choice for regulations that require disclosures regarding insurance in loans.