RESPA applies to all:

The correct choice pertains to the application of the Real Estate Settlement Procedures Act (RESPA), which is primarily designed to regulate settlement practices in the real estate industry and protect consumers during the home buying process. RESPA specifically governs real estate transactions involving "federally related mortgage loans," which include loans made to finance the purchase of one- to four-family dwellings.

This means that RESPA is focused on residential real estate transactions rather than commercial transactions. While options regarding business loans and commercial real estate do occur, they are outside the scope of RESPA's provisions. The act seeks to ensure transparency in the closing process for consumers purchasing residential properties, making it essential for one- to four-family dwellings. Thus, if a transaction involves a federally related mortgage loan secured by a one- to four-family dwelling, it is covered by RESPA.