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First passed
in 1974, the Real Estate Settlement Procedures Act
(RESPA) is a federal statute enacted by the U.S.
Department of Housing and Urban Development (HUD)
to govern the real estate settlement process by
mandating all parties fully inform borrowers about
all closing costs, lender servicing and escrow
account practices, business relationships between
closing service providers and other parties to the
transaction. The RESPA statute covers mortgage
loans on a one-to-four family residential
property. These include most purchase loans,
assumptions, refinances, property improvement
loans, and equity lines of credit.
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