What does RESPA stand for?

The correct answer is Real Estate Settlement Procedures Act. RESPA is a federal law that was enacted to provide consumers with details about the costs associated with the closing of real estate transactions. It ensures that homebuyers receive information regarding the settlement process, thereby helping them make informed decisions. One of the primary objectives of RESPA is to eliminate abusive practices, such as kickbacks and referral fees, which can increase the costs of settlement services.

The other options do not accurately reflect the purpose or the title of the law. For instance, the second option uses "Residential Estate Sale Procedures," which does not align with the focus on settlement procedures. The third option refers to a "Real Estate Sellers Protection Act," which is not a recognized law or regulation regarding the settlement process. Lastly, "Residential Settlement Payment Act" mischaracterizes the law, focusing incorrectly on payment rather than the overall settlement process. Thus, the accurate definition provided by the first option aligns perfectly with the federal regulation governing real estate settlements.