Real Estate Settlement Procedures Act (RESPA)

The Real Estate Settlement Procedures Act (RESPA) is a U.S. federal law designed to protect homebuyers and sellers during the real estate transaction process. It requires lenders to provide clear and detailed information about the costs involved in buying a home, such as closing costs and fees. RESPA also mandates that consumers receive a Good Faith Estimate, which outlines estimated loan charges, helping them compare different offers. The law aims to prevent hidden fees and ensure transparent communication, making the buying process smoother and more informed for all parties involved.