What does RESPA stand for in real estate?

The correct answer is indeed the Real Estate Settlement Procedures Act. This federal law, enacted in 1974, was designed to help consumers become better educated about the costs associated with buying a home. RESPA mandates clear disclosures to borrowers about the nature and costs of the settlement process, and it prohibits certain practices that can unfairly increase the cost of settlement services.

RESPA also governs the handling of escrow accounts and requires lenders to provide a Good Faith Estimate (GFE) to borrowers, outlining expected settlement charges. By ensuring transparency and accountability in real estate transactions, RESPA aims to protect consumers and promote fair dealings in the real estate market.

Other options do not represent actual legislation related to real estate transactions. Each alternative name either misrepresents the purpose of the act or does not exist as a recognized statute in the real estate field, making them less relevant to understanding the context of settlement procedures in real estate transactions.