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

The Real Estate Settlement Procedures Act (RESPA) was established primarily to ensure that consumers receive clear and comprehensive information about the costs associated with real estate transactions, particularly settlement costs. It mandates that lenders and settlement service providers give consumers a detailed breakdown of the fees and charges they can expect to incur, which promotes transparency in the home-buying process. By requiring certain disclosures, such as the Good Faith Estimate and the HUD-1 Settlement Statement, RESPA helps buyers make informed decisions and protects them from hidden fees and potential abuses in the settlement process. This focus on clarity and disclosure is the core purpose of the Act, allowing consumers to better understand their financial obligations when purchasing property.