What type of consumer protection does RESPA provide?

RESPA, or the Real Estate Settlement Procedures Act, is designed to ensure transparency in the home buying process, particularly related to fees and settlement costs in real estate transactions. The primary consumer protection it provides is against closing fraud and theft. This is achieved through requirements that lenders provide borrowers with important disclosures regarding the costs they will incur at closing, as well as ensuring they receive a good-faith estimate of these costs beforehand.

By mandating comprehensive disclosures about the settlement process, RESPA helps consumers better understand and anticipate the financial aspects of their transactions, reducing the risk of fraudulent activities that could occur during closing. This protects consumers by ensuring that they are fully informed and can spot any irregularities or potential fraud before it affects their financial investment.

While the other options touch on important consumer issues, they do not specifically align with the protective measures that RESPA encompasses. For instance, property devaluation and insufficient loan information are not directly addressed by RESPA's framework, making the focus on closing fraud and theft central to its mission of consumer protection. False advertising is also not specifically regulated under RESPA.