What does RESPA stand for, and what does it regulate?

The correct answer identifies RESPA as the Real Estate Settlement Procedures Act, which plays a crucial role in regulating the settlement process and ensuring transparency in the disclosure of costs associated with real estate transactions. RESPA was established to protect consumers from excessive settlement costs and to eliminate kickbacks and referral fees that may increase the price of settlement services. It requires lenders to provide borrowers with timely disclosures of the costs of their mortgages and includes provisions for the mortgage application process, but its main focus is on the overall settlement process and the clarity of costs involved. This regulation ensures that consumers are informed about the various fees and services related to real estate transactions, promoting fairness and transparency.