Final answer:
The Real Estate Settlement Procedures Act of 1974 focused on increasing transparency and eliminating unethical practices within the real estate industry, providing consumers with detailed information about closing costs and settlement services.
Step-by-step explanation:
The Real Estate Settlement Procedures Act of 1974, commonly known as RESPA, focused on the real estate industry. This legislation was enacted to ensure that buyers and sellers of residential properties are provided with detailed information about all costs associated with the closing of a real estate transaction. RESPA was part of a broader effort to protect consumers during a time when questionable practices in the housing market, such as blockbusting, redlining, and predatory lending, were widespread.
RESPA's main objectives were to help consumers become better shoppers for settlement services and to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services. The act required lenders to provide a Good Faith Estimate of closing costs at the time of the loan application and a Hud-1 Settlement Statement at closing, detailing all charges imposed upon the borrower and seller. Through its emphasis on transparency and fair practices, RESPA aimed to prevent the exploitation and misleading of consumers which had been issues in the real estate and financial industries.