How many residential property units does RESPA (Reg. X) cover?

The correct choice is grounded in the scope of the Real Estate Settlement Procedures Act (RESPA), which is primarily designed to protect consumers in the residential real estate market. RESPA applies specifically to residential properties that have one to four units, which includes single-family homes, condos, and multi-family properties up to four units.

RESPA's regulations cover aspects such as providing disclosures to borrowers about settlement costs, prohibiting certain practices like kickbacks or referral fees, and ensuring that borrowers receive accurate information about their potential loan terms and settlement options. The legislation aims to promote transparency and prevent abuse in the closing process.

While the other choices mention broader ranges of units, RESPA explicitly defines its coverage up to four residential units. Properties with more than four units fall under different regulations, such as those applicable to commercial transactions or larger residential properties, which are not governed by RESPA. This distinction is crucial for understanding the applicability of RESPA and ensures that mortgage professionals and consumers are aligned with the correct regulatory framework.