Question

One of the main purposes of RESPA regulations is?

A) to protect the real estate agent from fraud.
B) to better inform the real estate agent about the financing of a real estate transaction
C) to protect the home buyer from fraud.
D) to better inform the buyer about the financing of a real estate transaction

Answer 1

RESPA regulations are in place to better inform the buyer about the financing of a real estate transaction.

Step-by-step explanation:

One of the main purposes of RESPA (Real Estate Settlement Procedures Act) regulations is to better inform the buyer about the financing of a real estate transaction. RESPA requires lenders to provide certain disclosures to homebuyers, such as a Loan Estimate and a Closing Disclosure, which outline important details about the loan terms, closing costs, and other fees associated with the transaction. These disclosures ensure that homebuyers have clear and accurate information about the financing of their real estate purchase.