The Real Estate Settlement Procedures Act does NOT apply to which of the following?

The Real Estate Settlement Procedures Act (RESPA) regulates the practices of lenders, mortgage brokers, and other settlement service providers in residential real estate transactions involving federally related mortgage loans. Its primary goal is to ensure that consumers are informed about the costs associated with their loans and to prohibit certain practices that can lead to abusive practices.

When it comes to the applicability of RESPA, loans for 25 acres or more of vacant land are explicitly excluded from its coverage. This distinction is important because RESPA primarily focuses on residential transactions, which are defined by their use as dwelling units for one to four families. Since land that is not intended for immediate residential use does not fall under this scope, the Act does not apply to such transactions.

On the other hand, property improvement loans and purchase loans with a first mortgage are specifically covered under RESPA as they typically involve residential properties. Additionally, loans involving lenders investing more than $1 million are also likely to fall under the jurisdiction of RESPA because the nature of the transaction does not change simply based on the size of the loan. Understanding these distinctions is key for individuals working in real estate and finance, as they navigate the intricacies of compliance with federal laws like RESPA.