In a real estate closing, which practice is addressed by RESPA?

• A. Payment of referral fees
• B. Regulation of loan interest rates
• C. Homeowners association dues
• D. Disclosure of closing information and kickbacks at closings

Answer: (D)

RESPA focuses on making settlement costs clear and preventing unfair practices at closing. The best answer captures both parts: providing disclosures about closing information and stopping kickbacks or referral fees among settlement service providers. RESPA requires consumers to receive clear, timely statements of all settlement costs and prohibits undisclosed or inflated fees tied to referrals, helping buyers compare and shop for services without hidden markups. It also covers affiliated business arrangements to ensure borrowers know who is involved and what fees are being paid. This set of protections is why this option is the correct one. Loan interest rates are regulated in other ways and aren’t the focus of RESPA, and HOA dues aren’t addressed by RESPA either.