Oregon Broker PSI Practice Exam

Who administers the Real Estate Settlement Procedures Act (RESPA)?

1. Consumer Financial Protection Bureau

2. Real Estate Commission

3. Department of Housing

4. Federal Trade Commission

The correct answer is: Consumer Financial Protection Bureau

The Real Estate Settlement Procedures Act (RESPA) is administered by the Consumer Financial Protection Bureau (CFPB). This federal law was enacted to ensure that consumers received information about the settlement process, protecting them from abusive practices during the home buying process. The CFPB is tasked with implementing and enforcing RESPA regulations, which includes overseeing the disclosure requirements that lenders, mortgage servicers, and real estate professionals must follow. The mission of the CFPB encompasses consumer protection, which aligns with RESPA's aim to inform and safeguard consumers during real estate transactions. By ensuring compliance with the regulations established under RESPA, the CFPB plays a crucial role in promoting transparency and fairness in the real estate market. Other entities mentioned, such as the Real Estate Commission, Department of Housing, and Federal Trade Commission, have their own roles and responsibilities, but they do not administer RESPA. The Real Estate Commission primarily regulates real estate professionals at the state level, while the Department of Housing handles broader housing policies. The Federal Trade Commission focuses on antitrust and consumer protection but does not directly administer RESPA.