Real Estate Settlement Procedures Act

The Real Estate Settlement Procedures Act (RESPA) is a U.S. law designed to protect consumers in the home buying process. It requires lenders to provide clear disclosures about the costs involved in closing a real estate transaction. RESPA helps buyers understand what they are paying for and prevents hidden fees and unethical practices. The law also mandates the use of a standardized form called the Loan Estimate, which outlines loan terms and estimated costs, allowing consumers to compare offers from different lenders easily. Overall, RESPA promotes transparency and fairness in real estate transactions.