What regulation requires consumers to receive a closing disclosure before finalizing a transaction?

The correct answer is C. TRID, which stands for TILA-RESPA Integrated Disclosure. TRID is a set of regulations that combine the requirements of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) to make the disclosure process for consumers more straightforward and transparent. One key element of TRID is the requirement that consumers receive a Closing Disclosure at least three business days before the closing of their mortgage loan. This disclosure provides important information about the loan terms, projected monthly payments, and closing costs, allowing consumers to understand the final financial implications before finalizing the transaction.

While the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) are related regulations that address aspects of real estate transactions, TRID specifically integrates and streamlines their disclosure requirements, making it necessary for the Closing Disclosure to be presented prior to closing. The Fair Housing Act, on the other hand, focuses on preventing discrimination in housing and does not pertain to the closing disclosures related to loan transactions.