Posted on: 03rd Sep, 2009 10:55 am
WHAT IS RESPA?
Real estate settlement procedure act
RESPA is about closing costs and settlement procedures. it requires that consumers receive disclosures at various times in the transaction and outlaws that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process
RESPA stands for Real Estate Settlement Procedures Act.
It requires lenders to disclose information to potential customers throughout the mortgage process.
It protects borrowers from abuses by lending institutions.
RESPA mandates that lenders fully inform borrowers about following aspects-
1) all closing costs
2) lender servicing
3) escrow account practices
4) business relationships between closing service providers
5) other parties to the transaction
It requires lenders to disclose information to potential customers throughout the mortgage process.
It protects borrowers from abuses by lending institutions.
RESPA mandates that lenders fully inform borrowers about following aspects-
1) all closing costs
2) lender servicing
3) escrow account practices
4) business relationships between closing service providers
5) other parties to the transaction
RESPA was enacted in 1974 by Congress in order to bring control & transparency to the settlement of real estate transactions.
It regulates disclosure, fee sharing, referral business and marketing pacts between service providers
It regulates disclosure, fee sharing, referral business and marketing pacts between service providers
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