The act that requires lenders to inform buyers and sellers of all settlement fees and charges is known as:

The Real Estate Settlement Procedures Act (RESPA) is designed specifically to ensure transparency in the settlement process of real estate transactions. This act requires lenders to provide a clear accounting of all settlement fees and charges to both buyers and sellers, promoting understanding and preventing any unscrupulous practices that may arise from hidden or excessive fees.

RESPA mandates that consumers receive a Good Faith Estimate of settlement costs when applying for a mortgage, as well as a HUD-1 Settlement Statement detailing the final costs at closing. These requirements foster informed decision-making by consumers, allowing them to better compare costs and understand the services provided during the transaction.

This focus on disclosure and fairness makes RESPA a crucial component of real estate transactions, protecting consumers and promoting competition among settlement service providers.