The Real Estate Settlement Procedures Act applies to which of the following loans?

• A. Federally related loans for one- to four-family dwellings.
• B. Commercial loans for businesses.
• C. Loans secured by investment properties.
• D. All mortgage loans regardless of government involvement.

Answer: (A)

RESPA applies to federally related mortgage loans secured by residential property, specifically those on properties with one to four units. This means loans used to purchase, refinance, or construct a home in a dwelling that’s 1–4 units and that involve a lender regulated by the federal government or insured/guaranteed by a federal agency. It’s about protecting consumers in residential real estate settlements and the disclosures tied to those loans.

That’s why this choice is correct: it pins RESPA to the combination of federal involvement and the residential, 1–4 unit property. Loans that are purely commercial, tied to investment properties, or not connected to any government involvement fall outside RESPA’s scope.