What is the main objective of RESPA?

The primary objective of the Real Estate Settlement Procedures Act (RESPA) is indeed to protect homeowners and educate them about the various services involved in real estate transactions. RESPA was enacted to ensure transparency in the real estate settlement process, primarily focusing on disclosing the costs associated with buying a home. This legislation aims to make sure that consumers receive clear information about their rights and the financial implications of their transactions, which can empower them to make informed decisions.

By mandating disclosures of settlement costs and prohibiting practices such as kickbacks and referral fees, RESPA works to safeguard the interests of homeowners during the often complex process of acquiring a property. This directly contributes to a more equitable real estate marketplace by ensuring that consumers understand what they are paying for and reducing the likelihood of exploitation.

Other options, while related to real estate, do not encapsulate the fundamental intention of RESPA. For example, enhancing investment returns or regulating interest rates pertains more to financial strategies and economic control rather than consumer protection and education. Similarly, improving commercial property development falls outside the primary focus of RESPA, which is specifically concerned with residential real estate transactions and the experiences of homeowners.