What is the primary purpose of RESPA?

The primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to provide consumer protection regarding mortgage settlements. RESPA was enacted to help ensure that borrowers receive accurate and complete information about the costs associated with obtaining a mortgage.

This includes requiring disclosures that inform consumers about their rights, the settlement process, and the estimated costs they can expect when securing a mortgage. By promoting transparency, RESPA helps prevent abusive practices in the closing process and allows consumers to better understand the fees associated with their loans, thus empowering them to make informed financial decisions regarding home purchases.

Other options, such as lowering interest rates or expediting loan approvals, do not fall under the direct scope of RESPA. Instead, these issues may be influenced by other regulations and market factors. Similarly, regulating property taxes is outside the purview of RESPA and is managed by different governing bodies and laws. Ultimately, the act specifically aims to facilitate a fair and clear settlement process for consumers in real estate transactions.