What does RESPA stand for?

The correct answer is A, which stands for the Real Estate Settlement Procedures Act. This federal law was enacted to provide transparency in the real estate settlement process by requiring lenders to disclose all settlement costs associated with a mortgage. RESPA aims to protect consumers from unfair practices in the settlement process and ensures that they are well-informed about the fees and services involved in real estate transactions.

Understanding RESPA is crucial for those in the real estate and mortgage industries, as it lays out the rights of the borrowers and the responsibilities of the lenders. It mandates that homebuyers receive a Good Faith Estimate of settlement costs, allowing them to understand and compare the fees charged by various lenders.

The other options do not accurately reflect the full name or intent of the legislation, emphasizing the importance of familiarizing oneself with correct terminology in legal and real estate contexts.