Which federal act prohibits sellers from forcing buyers to use a specific title insurance company?

The Real Estate Settlement Procedures Act (RESPA) is the federal act that prohibits sellers from coercing buyers into using a particular title insurance company. This legislation is designed to promote transparency and fairness in real estate transactions, ensuring that consumers have the right to choose their own settlement service providers without undue influence or pressure from sellers or lenders.

RESPA specifically aims to prevent conflicts of interest and the steering of consumers toward service providers that may not represent the best value. By allowing buyers to make their own choices regarding title insurance, RESPA ensures that they can shop around and select a provider that meets their needs, which can lead to better service and potentially lower costs.

The other statutes mentioned, such as the Equal Credit Opportunity Act and the Truth in Lending Act, focus on different aspects of consumer rights and financial transactions, such as prohibiting discrimination in lending and ensuring clear disclosure of credit terms, respectively. However, they do not specifically address restrictions on the selection of title insurance companies in real estate transactions as RESPA does.