RESPA Law

RESPA is the acronym for "Real Estate Settlement Procedures Act". You may be thinking that you have heard the term before, but yet, how does it actually affect you? Of all of the HUD tenant law safeguards in place to ensure that homeowners receive fair and equitable service, with full and complete disclosure pertaining to each and every detail of the mortgage process, RESPA is by far the most comprehensive law. Guarantee your rights with the assistance of a RESPA lawyer today.

RESPA Law is to ensure enforcement of state and federal lending guidelines and curtail predatory lending practices. Contact a Real Estate Lawyer immediately if you have any reason to suspect that a lender may be violating any RESPA Law.

RESPA centers on consumer protections and prohibited practices.

  • RESPA requires that borrowers receive disclosures at various times. Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices and describe business relationships between settlement service providers.
  • RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.
  • RESPA also prohibits certain practices that increase the cost of settlement services. Prohibits lenders or home sellers from requiring home buyers to purchase title insurance from a particular company, either directly or indirectly, as a condition of sale.

Disclosures before settlement/closing occurs:

The HUD-1 Settlement Statement is a standard form that clearly shows all charges imposed on borrowers and sellers in connection with the settlement. RESPA allows the borrower to request to see the HUD-1 Settlement Statement one day before the actual settlement. Any violation of RESPA law would entitle the borrower to financial compensation. Do not wait until you are suffering the consequences of being mistreated, deceived or taken advantage of in any way. Borrowers may sue lenders or sellers that violate these provisions for an amount equal to three times all charges made for the title insurance, in addition to receiving additional rewards for other damages, court cost and legal fees.

See Also:

RESPA Law is to ensure enforcement of state and federal lending guidelines and curtail predatory lending practices. Contact a Real Estate Lawyer immediately if you have any reason to suspect that a lender may be violating any RESPA Law.

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