The Real Estate Settlement Procedures Act (RESPA)

• RESPA is a mortgage loan disclosure act that was designed to inform buyers and sellers of the settlement costs, elimate referral fees, limit the amount of money the buyer has to place in an escrow account and improve title record keeping.
• Lenders are required to provide the borrower with a good faith estimate of the settlement costs, a disclosure of all fees and charges and a booklet explaining the settlement process within three days of application for a loan.