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

The primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to help consumers become better shoppers for settlement services. This is achieved by requiring that consumers receive disclosures that provide information about the costs associated with the settlement process, including services provided by settlement service providers. By ensuring transparency in the fees and services that consumers will encounter during the closing of a mortgage loan, RESPA helps users make informed decisions regarding their options. Additionally, the act aims to eliminate kickbacks and referral fees that can increase costs, ultimately looking to protect consumers by allowing them to compare costs effectively and improve their understanding of the mortgage process.