Finance
What is the purpose of the Real Estate Settlement Procedures Act (RESPA)?
ATo set maximum interest rates on mortgage loans
BTo protect consumers from abusive settlement service charges and prohibit kickbacks among service providers✓ Correct
CTo require lenders to approve all qualified loan applications
DTo establish the conforming loan limits
Explanation
RESPA protects homebuyers by requiring disclosure of settlement costs, prohibiting kickbacks between settlement service providers (lenders, title companies, agents), and prohibiting sellers from requiring buyers to use a specific title company.
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