Any transaction involving a federally backed loan, whether it be Fannie Mae, Freddie Mac, FHA, or VA, any home loan that a person obtains that’s federally backed by the government is subject to the real estate settlement procedures act. This is a consumer protection statute that’s designed to protect borrowers from predatory lenders. For instance, it requires that the buyer receive the closing disclosure three days prior to closing so they can review it to make sure the rate and terms are correct.