What type of loans does RESPA typically govern?

RESPA, which stands for the Real Estate Settlement Procedures Act, primarily governs loans related to residential properties. The purpose of RESPA is to ensure that consumers receive information about the costs of real estate settlements, thereby facilitating a clearer understanding of the financial aspects involved in purchasing a home. This includes regulations concerning disclosures and the practices of mortgage servicers, aimed at preventing abusive practices and promoting transparency.

The focus of RESPA is explicitly on residential transactions, which typically involve one to four-family dwellings, and it does not extend its provisions to commercial properties or all secured loans, as many of these do not involve the same consumer protections required for residential loans. High-cost loans, while they may have some relevance to similar consumer protection laws, are not exclusively governed by RESPA but are more closely associated with the Home Ownership and Equity Protection Act (HOEPA). Thus, the correct answer clearly indicates that RESPA is specifically applicable to loans for residential properties.