The Real Estate Settlement Procedure Act laws protect consumers during which process?

The Real Estate Settlement Procedures Act (RESPA) was enacted to protect consumers by ensuring transparency and fairness during the settlement process of real estate transactions, specifically focusing on single-family residential properties. RESPA requires lenders to provide borrowers with pertinent information about the costs involved in a transaction, including loan estimates and disclosures about the settlement process. This helps consumers make informed decisions and reduces the risk of abuse or deceptive practices in the mortgage and settlement process.

While rental properties, commercial properties, and agricultural land transactions may involve other regulations and protections, RESPA is specifically designed to address the needs and legal protections for consumers in residential property settlements. By focusing on residential properties, RESPA plays a critical role in ensuring that homebuyers are aware of their rights and the associated costs of their transactions.