What does the Real Estate Settlement Procedures Act (RESPA) require?

The Real Estate Settlement Procedures Act (RESPA) mandates a standard format for closing statements to ensure transparency and clarity in real estate transactions. This standardization helps consumers understand all the costs associated with their closing, including loan origination fees, title insurance, and other settlement services. By requiring a uniform closing statement, RESPA aims to reduce settlement costs and improve the efficiency of the settlement process.

While other options may pertain to various aspects of real estate or lending, they do not directly relate to the core purpose of RESPA, which is to provide consumers with easily understandable information regarding the closing process and associated costs.