West Virginia MLO Practice Test 2026 – Complete Exam Prep

The acronym RESPA stands for the Real Estate Settlement Procedures Act. This federal law was enacted to ensure that consumers are provided with important information about the costs involved in the settlement process for real estate transactions. RESPA aims to protect consumers from abusive practices related to the settlement process, such as unanticipated charges or conflicts of interest. It mandates disclosures that inform borrowers of their rights and the costs associated with their loans, thus promoting transparency in real estate transactions.

The other options do not accurately reflect the correct terminology or intent of the legislation. For example, terms like "Security Procedures" or "Regulatory Environment" do not align with the focus on settlement procedures specific to real estate transactions that is central to RESPA.