Which of the following statements regarding RESPA is true?

The statement regarding RESPA, which notes that it provides guidelines for closing costs to ensure transparency, is correct because RESPA, the Real Estate Settlement Procedures Act, was implemented to protect consumers from abusive practices during the home buying process. One of its primary objectives is to require informational disclosures about the costs and fees associated with the closing process. This transparency allows consumers to better understand the charges they will incur and helps them compare settlement costs from different lenders, fostering informed decision-making.

RESPA mandates that borrowers receive a Good Faith Estimate of settlement costs, outlining the charges they can expect. This requirement creates a level of accountability among lenders and settlement service providers, as they must clearly disclose the conditions under which fees may change and facilitate the comparison of various options available to the buyer. Thus, this focus on transparency is crucial to promoting fairness and protecting consumers in real estate transactions.

The other statements do not align with RESPA's purpose and function. For example, RESPA strictly prohibits kickbacks between lenders and agents, ensuring that relationships between real estate professionals are not influenced by undisclosed payments. Additionally, RESPA is applicable to a wide range of residential loan types, not just those for primary residences, and it primarily governs residential transactions rather than commercial ones.