RESPA – Real Estate Settlement Procedures Act

This is the first in a series of blog posts addressing the Real Estate Settlement Procedures Act (RESPA). 12 U.S.C. Sec. 2601. RESPA is a consumer protection statute enacted in 1974. It exists to help consumers shop for settlement services and eliminate kickbacks and referral fees between lenders and their affiliates. To accomplish this, RESPA requires that consumers be disclosed relevant information prior to settlement as to the associated costs. RESPA also prohibits certain practices, such as giving or accepting any thing of value for referrals or services not performed.

RESPA covers residential consumer loans, i.e. loans secured with a mortgage placed on a one-to-four family residential property. This includes most purchase, refinance, and line of credit loans.

Future posts will address the requirements of RESPA. At Wilson Law Group, we diligently research and analyze a broad spectrum of consumer protection laws for the benefit of our clients. If you feel that you may have been the victim of a practice prohibited by RESPA, call today for a free consultation.

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