Regulations

Everything you need to know about RESPA, explained

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

The Real Estate Settlement Procedures Act has been around since 1974 -- but the changes over the past few years, combined with the creation and implementation of the Consumer Financial Protection Bureau (CFPB), have caused some confusion in the industry. What is the act? What does it mean for agents and for consumers? Here's what you need to know about RESPA -- explained. What is RESPA? It’s the Real Estate Settlement Procedures Act, a consumer protection statute passed by the U.S. Congress in 1974. The statute has two main purposes: To help consumers become better shoppers for settlement services; and To eliminate kickbacks and referral fees that may increase the costs of certain settlement services. The consumer side of RESPA requires that borrowers receive disclosures at certain times during the mortgage loan transaction that plainly describe the terms of the loan, all settlement service charges associated with the loan and the business relationships between...