Final answer:
RESPA covers real estate transactions financed using both government-backed loans and private financing and aims to protect consumers in the settlement process.
Step-by-step explanation:
RESPA, which stands for the Real Estate Settlement Procedures Act, covers real estate transactions financed using both government-backed loans and private financing.
It applies to residential real estate transactions, which can include purchasing a home, refinancing a mortgage, or taking out a home equity loan. Examples of government-backed loans include FHA loans, VA loans, and USDA loans.
The purpose of RESPA is to protect consumers by ensuring transparency and fairness in the settlement process, as well as preventing kickbacks and excessive fees from lenders.