Which statement best describes the purpose of RESPA?

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RESPA focuses on how settlements are handled in residential real estate closings. It aims to protect consumers by making closing costs transparent and by prohibiting abusive practices such as kickbacks and referral fees. This ensures borrowers receive clear, timely disclosures and can shop for settlement services without hidden or inflated charges. It doesn’t regulate license renewals, insure mortgage loans, or manage property taxes, so describing RESPA as governing settlement procedures in real estate transactions best fits its purpose.