What key requirement does RESPA enforce for consumers during transactions?

The Real Estate Settlement Procedures Act (RESPA) enforces the requirement for disclosure of all fees involved in a real estate transaction. This legislation is designed to protect consumers by ensuring transparency in the lending process. It mandates that lenders provide borrowers with clear information about all costs associated with obtaining a mortgage, including fees for services like appraisal, title insurance, and settlement.

The primary goal is to help consumers understand the full financial implications of their mortgage and to prevent hidden fees that can arise during the settlement process. By requiring lenders and settlement service providers to disclose these fees upfront, RESPA empowers consumers to make informed decisions and compare different loan offers, ultimately fostering a more competitive marketplace.

The other options, while related to aspects of real estate transactions, do not capture the essence of RESPA's primary purpose concerning consumer protection and transparency in fee disclosure.