What does RESPA primarily regulate?

RESPA, or the Real Estate Settlement Procedures Act, primarily focuses on ensuring that consumers receive clear and comprehensive information about settlement costs in real estate transactions. The legislation was established to promote transparency in the settlement process, which includes the costs associated with getting a mortgage and closing a real estate transaction.

By mandating the disclosure of these costs, RESPA aims to help consumers make informed decisions and compare costs across different service providers. This regulation helps prevent abusive practices such as undisclosed fees or kickbacks, thereby protecting consumers' interests in real estate transactions.

The other topics mentioned, such as interest rates, loan eligibility requirements, and advertising practices, fall under different regulatory frameworks. Interest rates are influenced more by economic conditions and lender policies. Loan eligibility is often governed by underwriting guidelines established by lenders, not RESPA. Lastly, advertising practices are regulated by the Truth in Lending Act and other consumer protection laws, focusing on how lenders communicate product information to potential borrowers. Therefore, the fundamental aspect of RESPA is the regulation of disclosure of settlement costs, making that the correct choice.