What is the primary focus of the Real Estate Settlement Procedures Act (RESPA)?

The primary focus of the Real Estate Settlement Procedures Act (RESPA) is to prevent kickbacks and referral fees in settlement services. RESPA was enacted to ensure transparency in the settlement process and to protect consumers from unnecessary costs and deceptive practices. By prohibiting kickbacks and referral fees, the legislation aims to eliminate conflicts of interest that could arise from incentivizing agents to recommend certain services over others, ensuring that consumers receive clear and fair pricing for the services they utilize during a real estate transaction.

The act also promotes disclosure of settlement costs and the nature of the mortgage process, contributing to an understanding of the financial obligations involved. While there are other regulatory frameworks and laws that address interest rates, credit disclosures, and mortgage agreements, the unique focus of RESPA is specifically on the integrity of settlement services, making option C the most accurate representation of its primary objective.