Which federal statute primarily serves to control the settlement costs of residential mortgage loans?

The federal statute primarily serving to control the settlement costs of residential mortgage loans is the Real Estate Settlement Procedures Act (RESPA). RESPA was enacted to ensure that consumers are provided with important information regarding the costs associated with the settlement process when obtaining a mortgage. It mandates the disclosure of settlement costs, shows consumers the total charges they will incur, and prohibits certain practices that could lead to increased costs, such as kickbacks and referral fees.

By requiring transparency and educating consumers about potential fees, RESPA aims to protect home buyers from unnecessary costs and make the home-buying process more straightforward. This law also ensures that parties involved in the transaction adhere to appropriate standards, further helping to keep mortgage costs manageable.

In contrast, the other laws listed serve different purposes within the realm of federal mortgage legislation. The Home Mortgage Disclosure Act (HMDA) focuses on monitoring lending patterns to ensure fair lending practices, the Truth in Lending Act (TILA) is centered around ensuring that consumers are informed about the cost of credit, and the Equal Credit Opportunity Act (ECOA) works to prevent discrimination in lending. While all these statutes are important in their respective areas, RESPA specifically addresses the control of settlement costs.