Which act aims to eliminate abusive practices in the real estate settlement process?

The Real Estate Settlement Procedures Act (RESPA) was specifically designed to eliminate abusive practices in the real estate settlement process. RESPA requires that borrowers receive important disclosures about the costs associated with closing a mortgage, which helps to ensure transparency and fairness in the transaction. This act prohibits kickbacks and referral fees between settlement service providers, which can lead to inflated costs for consumers. By providing consumers with better information and reducing the potential for unethical practices, RESPA aims to make the closing process more straightforward and protect homebuyers from excessive charges.

In contrast, the Secure and Fair Enforcement Mortgage Licensing Act focuses on creating a national licensing standard for mortgage loan originators, while the Dodd-Frank Act includes many reforms aimed at improving financial stability and protecting consumers, but it encompasses a broader range of issues. The Truth in Lending Act primarily addresses consumer credit by ensuring that consumers are informed about the terms and costs of borrowing. Each of these acts plays a vital role in the broader regulatory framework, but it is the Real Estate Settlement Procedures Act that directly targets abusive practices specifically in the real estate settlement process.