What does the acronym RESPA stand for?

The acronym RESPA stands for the Real Estate Settlement Procedures Act. This federal law was enacted to provide transparency in the real estate settlement process, primarily to help consumers understand the costs associated with buying a home and to protect them from potential abuses related to settlement services.

RESPA requires that borrowers receive pertinent and timely information about the costs involved in the closing process of a real estate transaction. It mandates that lenders and mortgage brokers provide a Good Faith Estimate of settlement costs and outlines specific procedures for the accurate disclosure of settlement fees. This act is significant as it emphasizes consumer protection, ensures that buyers are informed about all aspects of the transaction, and helps facilitate smooth real estate transactions.

Focusing on the alternatives, the other options do not accurately represent what RESPA stands for or its primary purpose. They either introduce terms that are not part of real estate legislation or mischaracterize the act itself, thus clarifying why "Real Estate Settlement Procedures Act" is the correct interpretation of the acronym RESPA.