Which types of loans are not covered under RESPA?

The correct answer highlights that temporary loans and business purpose loans are not covered under the Real Estate Settlement Procedures Act (RESPA). RESPA is primarily designed to protect consumers by ensuring transparency in the real estate settlement process, specifically with residential mortgage loans. Temporary loans, such as bridge loans or construction loans, are typically meant to meet short-term financing needs and are therefore outside the scope of RESPA.

Similarly, business purpose loans are aimed at financing commercial properties or business operations rather than residential properties. Since RESPA's protections are specifically tailored to residential transactions to prevent unethical practices and provide consumers with clear information about settlement costs, these types of loans do not fall under its regulations.

The other choices include loans that are typically used for residential purposes and, thus, fall under RESPA’s protection, as they involve residential real estate and the settlement process associated with those loans. This means that various protections offered by RESPA, such as the requirement for a Good Faith Estimate and standardized closing disclosures, would apply to those types of loans, ensuring consumers are well-informed and safeguarded during the mortgage process.