What is one of the main purposes of the RESPA?

The primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to ensure transparency in closing costs associated with real estate transactions. RESPA requires that borrowers receive clear and accurate information about the costs they will incur at closing, allowing them to make informed decisions and shop around for the best services. This regulation aims to eliminate surprise fees and promote understanding of the financial aspects of a real estate transaction.

By mandating detailed disclosures of settlement costs and providing guidelines for the handling of escrow accounts, RESPA helps to protect consumers from potentially misleading practices and ensures that they understand all fees involved. This focus on transparency directly contributes to the overall goal of making the real estate settlement process more straightforward and accessible for buyers and sellers alike.