Which type of transactions is considered exempt from RESPA?

The correct answer is business loans, as these transactions are typically exempt from the Real Estate Settlement Procedures Act (RESPA). RESPA primarily governs the buying and financing of residential properties, ensuring that consumers receive pertinent information about the costs involved in their transactions and protecting them from unearned fees and kickbacks.

Business loans, on the other hand, are generally considered commercial transactions and, therefore, fall outside RESPA's regulatory framework. This exemption is vital for businesses, as it allows for different standards and practices that are more suited to commercial transactions rather than the consumer protections emphasized in RESPA for residential dealings.

Other types of loans mentioned, like government loans, home equity loans, and manufactured home loans, generally remain subject to RESPA requirements. These loans often involve regulations aimed at protecting consumers engaged in residential property transactions. By contrasting these categories, it becomes clear why business loans stand apart and are regarded as exempt from RESPA.