Which of the following is covered under RESPA?

The correct answer is that government agency loans, such as FHA and VA loans, are covered under the Real Estate Settlement Procedures Act (RESPA). RESPA was enacted to protect homebuyers and sellers by providing them with pertinent information about the real estate settlement process. It particularly applies to federally related mortgage loans, which include loans backed by government agencies like the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). These types of loans are designed to help make homeownership more accessible, and RESPA ensures that borrowers are informed about the various fees and closing costs associated with their mortgage transactions.

In contrast, all-cash sales do not involve a mortgage loan and thus fall outside the scope of RESPA, which primarily addresses the settlement costs in financing scenarios. Rental property transactions with more than four units and vacant or unimproved property are also not covered under RESPA. The Act specifically focuses on one-to-four family residential properties, which further emphasizes why FHA and VA loans, being tied to residential properties, are included.