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RESPA, which means the Real Estate Settlement Procedures Act, is a federal customer protection law designed to offer openness throughout the property settlement process. Intended to avoid violent or predatory settlement practices, it requires mortgage lending institutions, brokers and other loan servicers to offer complete settlement disclosures to borrowers, restricts kickbacks and pumped up recommendation charges and sets limitations on escrow accounts.
wikipedia.org
At a Glance
- RESPA effects anyone associated with a property realty deal for a one to four-family system with a federally associated mortgage loan, consisting of: property owner, entrepreneur, mortgage brokers, lenders, builders, designers, title business, home warranty firms, lawyers, genuine estate brokers and representatives.
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