RESPA
In 1974, Congress enacted the Real Estate Settlement Procedures Act (RESPA) to address problems in the real estate settlement process including:
- abusive practices that increased costs to homebuyers
- lack of understanding about the settlement process and its costs
RESPA's purpose is twofold:
- to provide consumers with information about the real estate mortgage transaction and the costs associated with it
- to prohibit certain practices, such as referral fees between settlement service providers, that result in higher costs and reduced quality to consumers
WHAT'S NEW
RESPA Proposal Underestimates Compliance Costs
(June 3, 2008) The regulatory impact analysis used by HUD for proposed RESPA reform considerably underestimates the costs of implementing the new requirements by ignoring several key factors.
Read the report >
Read the news release >
RESPA Reform Is Too Complex, Expansive
(May 22, 2008) Reform should focus on reformatting the Good Faith Estimate (GFE) and HUD-1 for clearer disclosures that help borrowers better understand and compare mortgage products and closing costs.
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View testimony (PDF: 129KB) >
Proposed RESPA Rule Published
(Mar. 14, 2008) The proposed regulation includes, among other things, a mandatory four-page Good Faith Estimate (GFE) and a modified HUD-1/1A, a required "closing script" that must be read orally at settlement.
Read more (PDF: 3.4MB) >
Read more (PDF: 3.4MB) >
FEATURED CONTENT
How to Comply
REALTORS® must ensure that they are in compliance with RESPA, as penalties include triple damages, fines and even imprisonment. Learn how to play by the rules here.
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Affiliated Business Arrangements
In 1983, RESPA's Section 8 anti-kickback provision was amended to allow an exception for affiliated business arrangements so long as certain requirements are met. Learn what those requirements are and how to determine whether a business arrangement meets them.
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Marketing Agreements
What is a legitimate marketing agreement? What types of agreements could be misconstrued by RESPA enforcement officials? Understand the differences here.
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RESPA Related Products
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RESPA Do's and Don'ts Card Product Details and Ordering > |
AfBA Pocket Guide Product Details and Ordering > |
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More RESPA Related Products
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AfBA Do's and Don'ts Pocket Card Product Details and Ordering > |
RESPA Pocket Guide Product Details and Ordering > |
