What is the primary goal of the Real Estate Settlement Procedures Act?

The primary goal of the Real Estate Settlement Procedures Act (RESPA) is to ensure that consumers are informed about the costs associated with real estate transactions, particularly the settlement costs. This legislation was enacted to promote transparency in the closing process, helping buyers to understand the various fees and charges they will encounter. By requiring lenders to provide a Good Faith Estimate of settlement costs and detailed disclosures, RESPA helps buyers make informed decisions and avoid any potential surprise expenses during the closing of a real estate transaction.

The other options, while important in various aspects of real estate, do not accurately reflect RESPA’s purpose. Standardizing appraisal methods relates more to appraisal practices rather than the settlement process. Fair housing practices are governed by different laws focused on preventing discrimination in housing. Regulating real estate commissions pertains to how agents are compensated, which is outside the scope of RESPA's focus on settlement costs and consumer information.