RESPA (Real Estate Settlement Procedures Act)

The Real Estate Settlement Procedures Act (RESPA) is a federal law designed to protect consumers in real estate transactions, particularly when buying a home. It requires lenders to provide clear information about the costs involved in a mortgage, including fees for services like appraisals and title insurance. RESPA also aims to eliminate unnecessary costs and ensure consumers understand their rights during the settlement process. By promoting transparency and fairness, RESPA helps homebuyers make informed decisions and avoid unexpected expenses when closing on a property.