The Real Estate Settlement Procedures Act (RESPA) is primarily concerned with which aspect of real estate transactions?

The Real Estate Settlement Procedures Act (RESPA) is primarily focused on ensuring transparency and regulating the practices involved in real estate settlements, particularly around the disclosure of closing information and the prevention of illegal kickbacks. RESPA requires lenders, mortgage brokers, and settlement agents to provide borrowers with clear and comprehensive information about the costs associated with a mortgage transaction, including estimates of settlement costs and the actual costs that will be charged at closing.

One of the key components of RESPA is its prohibition against kickbacks and referral fees that could increase the cost of settlement services. By mandating disclosure of these costs and prohibiting unethical financial arrangements, RESPA helps protect consumers from unnecessary expenses and fosters a more competitive market.

The other choices focus on aspects that, while important in real estate, do not align with RESPA’s primary goals. Property tax assessments relate to valuation for tax purposes, homeowner's insurance regulations concern policies covering property against various risks, and mortgage lending practices encompass the overall processes of obtaining a mortgage but do not specifically address the settlement and closing aspects that RESPA regulates. Thus, the correct choice is the one that reflects RESPA's core function of ensuring transparency and fairness during the closing process.