The primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to?

The Real Estate Settlement Procedures Act (RESPA) was enacted to promote transparency in settlement costs associated with real estate transactions. Through this legislation, borrowers receive detailed information about the costs of their loan and the services provided during the closing process. This is crucial because it allows consumers to understand what they are being charged for and helps them make informed decisions about their mortgage options. RESPA mandates that lenders provide a Good Faith Estimate (GFE) of settlement costs and implement a standardized disclosure form, which details the various fees that a borrower will incur, enabling them to comparison shop for better terms and conditions.

This transparency serves to protect consumers from potential overcharging and hidden fees, ultimately nurturing a more competitive market where borrowers can seek the best financial products available to them.

In contrast, the other options, such as lowering interest rates, encouraging refinancing, or expediting the home buying process, are not the main focus of RESPA. While these elements can be indirectly influenced by greater transparency and consumer understanding, they do not encapsulate the primary goal of the legislation itself.