West Virginia Mortgage Law Test 2025 – 400 Free Practice Questions to Pass the Exam

The Real Estate Settlement Procedures Act (RESPA) primarily focuses on ensuring that consumers are informed about the various costs associated with mortgage settlements. This includes providing clear and concise information about settlement costs so that borrowers can make informed choices regarding their mortgage transactions. RESPA mandates that lenders provide a Good Faith Estimate (GFE) of the closing costs within three days of receiving a loan application. It also requires a detailed closing disclosure that outlines the final costs, giving consumers transparency and the ability to compare offers from different lenders.

Understanding and being aware of these costs help consumers avoid unexpected fees and charges, promoting a fair and clear settlement process. RESPA does not regulate interest rates, dictate property sales timelines, or establish educational requirements for real estate agents, which distinguishes its purpose in ensuring transparent transactions within real estate financing and settlements.