What is the primary purpose of RESPA?

The primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to ensure transparency in the settlement process. This federal law was enacted to provide homebuyers and sellers with complete information regarding the costs involved in the transaction and the settlement process. RESPA requires that lenders provide borrowers with disclosures about loan terms, settlement costs, and other related financial information. This transparency helps consumers to become more informed and to comparison shop for certain services, thereby preventing unlawful practices such as kickbacks or referral fees between settlement service providers.

The other options do not accurately reflect the primary objectives of RESPA. Regulating agent commissions, dictating property pricing, and governing zoning laws fall under different statutes and regulatory frameworks, not RESPA's scope. By adhering to the principles of RESPA, the real estate industry fosters a more transparent and equitable marketplace for all parties involved in real estate transactions.