What is the significance of the Real Estate Settlement Procedures Act (RESPA)?

The significance of the Real Estate Settlement Procedures Act (RESPA) lies in its role in protecting consumers during the home buying process. RESPA aims to ensure transparency in the real estate settlement process and eliminate hidden fees and unnecessary costs. It requires that borrowers receive disclosures that provide clear and concise information about the costs involved in the closing process, which helps consumers make informed decisions.

By mandating that certain disclosures be made and providing guidelines for the handling of escrow accounts, RESPA helps safeguard consumers from potential abuses, such as overcharging and conflicts of interest. This emphasis on consumer protection and clarity during real estate transactions is central to the purpose of RESPA, making option B the correct choice for this question.

The other options do not accurately represent the core functions of RESPA; it does not regulate real estate agents' commissions, create zoning laws, or define property ownership rights, as these functions are outside the scope of the Act.