Which law mandates the delivery of the Closing Disclosure before consummation of a loan?

The correct answer is the Real Estate Settlement Procedures Act (RESPA). RESPA is designed to help consumers understand the costs associated with the mortgage and settlement process. One of the key requirements under RESPA is that lenders must provide the Closing Disclosure to borrowers at least three business days before the consummation of the loan. This document details the final terms and costs of the mortgage, allowing borrowers to review the details and ensure that all terms are as expected before closing the deal.

The other options, while related to real estate and lending, do not specifically mandate the delivery of the Closing Disclosure. The Equal Credit Opportunity Act (ECOA) focuses on preventing discrimination in lending; the Foreign Investment in Real Property Tax Act (FIRPTA) deals with tax implications for foreign investors in U.S. real estate; and HUD (the Department of Housing and Urban Development) oversees various housing programs but is not the legislation that mandates the Closing Disclosure specifically. Understanding the components and implications of RESPA is crucial for those involved in real estate transactions, especially for ensuring proper disclosure and transparency in loan processes.