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

What is the primary purpose of the Real

Multiple choice — select the best answer

ATo set the maximum interest rate lenders may charge on home loans
BTo require disclosure of settlement costs and to prohibit kickbacks for referrals
CTo guarantee mortgage loans made to first-time homebuyers
DTo establish federal licensing standards for real estate agents

✓ Correct answer: B. To require disclosure of settlement costs and to prohibit kickbacks for referrals RESPA is a consumer-protection statute focused on settlement-cost transparency and on banning kickbacks and unearned fees for the referral of settlement-service business. It does not cap interest rates.

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

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