What does the Real Estate Settlement Procedures Act (RESPA) mandate?

The Real Estate Settlement Procedures Act (RESPA) mandates the disclosure of settlement costs to consumers, which is crucial for promoting transparency and understanding in real estate transactions. This legislation requires that borrowers receive detailed information regarding all the costs they will incur during the settlement process. This is intended to help consumers make informed decisions and avoid unexpected fees.

By ensuring that real estate professionals provide a Good Faith Estimate (GFE) and a HUD-1 Settlement Statement, RESPA aims to promote fair and equitable practices in the real estate industry, which ultimately benefits consumers by facilitating better financial planning and understanding of the costs involved in purchasing or refinancing a property.

The other options relate to different aspects of real estate and finance but are not covered under RESPA's provisions. For instance, seller financing refers to a method of selling property rather than a disclosure requirement, property appraisals are necessary for assessing value but are not mandated by RESPA, and zoning laws are regulations set by local governments unrelated to property settlements.