The Real Estate Settlement Procedures Act (RESPA)

The Real Estate Settlement Procedures Act (RESPA) is a federal law that protects homebuyers by requiring transparency in the mortgage and settlement process. It ensures that lenders provide clear information about closing costs, prevents kickbacks or hidden fees, and promotes fair practices. By doing so, RESPA helps consumers understand the expenses involved in purchasing a home, reducing surprises and promoting informed decision-making during the settlement or closing process.