Finance

In South Dakota, the primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to:

ASet maximum interest rates for mortgage loans
BRequire disclosure of settlement costs and prohibit certain kickbacks and referral fees in residential mortgage transactions✓ Correct
CRegulate the activities of real estate agents in closings
DSet minimum down payment requirements for home purchases

Explanation

RESPA requires lenders to provide borrowers with disclosures about settlement services and costs, and prohibits kickbacks, unearned fees, and certain referral fees between settlement service providers. It applies to federally related mortgage loans for residential properties.

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