Which legislation regulates the practices of real estate settlement service providers?

The correct answer is RESPA, which stands for the Real Estate Settlement Procedures Act. This legislation is specifically designed to regulate the practices of real estate settlement service providers, ensuring transparency and protecting consumers during the home buying process. RESPA requires that consumers receive relevant disclosures regarding the costs associated with real estate transactions, including estimates of settlement costs and any affiliated business arrangements.

Additionally, RESPA established guidelines to prevent kickbacks and referral fees in the settlement process, promoting fair competition among service providers and helping consumers understand their rights and the costs involved. This emphasis on transparency and consumer protection makes RESPA a cornerstone in the regulation of real estate settlement practices.

The other options, while related to finance and consumer protection, do not regulate real estate settlement services specifically. TILA (Truth in Lending Act) focuses on informing consumers about the terms and costs of credit; FDCPA (Fair Debt Collection Practices Act) restricts debt collectors' practices; and HOEPA (Home Ownership and Equity Protection Act) targets high-cost mortgages. None of these acts directly govern the functions and responsibilities of settlement service providers in real estate transactions, making RESPA the best choice in this context.