What is the primary goal of RESPA?

The primary goal of the Real Estate Settlement Procedures Act (RESPA) is to ensure transparency in real estate transactions, particularly concerning the costs associated with buying a home. It focuses on providing consumers with clear and accurate information about the settlement process, including the charges they will face. A significant aspect of this is the disclosure of costs and the elimination of kickbacks, which refers to any fees or payments made in return for referral of business. By prohibiting these kickbacks, RESPA aims to protect consumers from hidden fees and conflicts of interest, ensuring that they are informed participants in their real estate transactions. This heightened level of disclosure empowers buyers and promotes competition and fairness within the housing market, contributing to an overall more equitable transaction process.

While other options may address aspects of real estate transactions, they do not encapsulate the overarching objective of RESPA as effectively as the goal of ensuring transparency and eliminating kickbacks in settlement services.