What does RESPA stand for?

The correct answer is "Real Estate Settlement Procedures Act." RESPA is a significant piece of legislation that was enacted to protect consumers during the home buying process by ensuring that they receive pertinent and timely information regarding the costs of settling a mortgage. The law requires that buyers receive disclosures about the mortgage settlement process and prohibits certain practices that can inflate closing costs, such as kickbacks and referral fees.

Understanding the proper wording of the acronym is crucial as it accurately reflects the act's focus on real estate transactions along with settlement procedures. The other options reflect variations or inaccuracies regarding the name and intent of the legislation, further emphasizing the importance of accurately characterizing the act in discussions of mortgage compliance and consumer protection.