What is the primary goal of the Real Estate Settlement Procedures Act (RESPA)?

The primary goal of the Real Estate Settlement Procedures Act (RESPA) is to protect consumers and provide disclosures in the settlement process. RESPA was enacted to ensure transparency in the closing of real estate transactions, particularly concerning the costs involved in the settlement process. By requiring detailed disclosures regarding settlement services and fees, RESPA aims to prevent abusive practices and inform consumers about the financial implications of their transactions.

Under RESPA, consumers must receive critical information about their rights and the services they are receiving. This includes a good faith estimate of settlement costs and a standardized form outlining these costs, allowing consumers to compare offers and make informed decisions. The act also prohibits certain practices like kickbacks and referral fees that can lead to inflated costs, further protecting consumers.

In contrast to the other choices, which either suggest profit motives or extreme measures concerning mortgage lending, the focus of RESPA is firmly on consumer protection and ensuring a fair and transparent real estate transaction process.