Hawaii Pre-Licensing National Practice Exam 2025 – Your Complete Prep Guide

The Real Estate Settlement Procedures Act (RESPA) is primarily designed to protect consumers during the home buying and mortgage processes by ensuring they receive clear and accurate disclosures regarding the costs associated with closing a real estate transaction. One of its key purposes is to inform consumers about the various fees and settlement costs they will incur, allowing them to make better-informed decisions relating to mortgage and real estate transactions. This transparency helps to reduce confusion and prevent hidden fees, ultimately fostering fair practices within the real estate industry.

The other options do not align with the core intent of RESPA. Regulation of property management companies falls outside the scope of this act, which focuses specifically on the settlement process and related disclosures. Similarly, RESPA does not mandate specific financing options for homebuyers—those decisions are typically up to lenders and borrowers. Lastly, establishing zoning laws is within the purview of local or state governments, rather than a federal law such as RESPA. Thus, the emphasis on consumer disclosures regarding closing costs is what makes the first option the correct answer.