The Real Estate Settlement Procedures Act, commonly referred to as RESPA, was passed by Congress in 1974 to give consumers certain information and protections when financing a home. RESPA applies whenever a consumer obtains a conventional, FHA, VA or HUD loan. RESPA is administered by HUD. The Act prohibits those involved in the settlement of a real estate deal from receiving referral fees or kickbacks that would increase the cost of settlement charges. Lenders are required to provide consumers with an information bulletin within three (3) days of application, a good faith estimate of closing costs, and a closing statement 24 hours prior to the closing. Now you know…
Advertisement
Filed under: Uncategorized
