What is one of the key purposes of RESPA?

One of the key purposes of the Real Estate Settlement Procedures Act (RESPA) is to ensure transparency in closing costs and procedures. RESPA was enacted to protect consumers during the home-buying and loan process by requiring lenders to provide clear and accurate disclosure of all costs associated with the settlement. This includes providing borrowers with information on the various fees they may incur, the services rendered, and the actual costs involved in closing a real estate transaction. By promoting transparency, RESPA helps consumers make informed decisions and reduces the potential for hidden fees and abusive practices in the real estate settlement process.

This focus on clarity and consumer protection is essential for fostering trust in real estate transactions, making it a cornerstone of RESPA's regulations. The other options do not directly relate to the concerns addressed by RESPA. For instance, property tax assessments are governed by local laws, zoning laws are determined by municipalities, and mortgage insurance requirements are set by lenders or specific mortgage programs, none of which fall under the purview of RESPA's consumer protection mandates.