RESPA REALITIES
The National Association of REALTORS® RESPA Awareness Campaign
In 1974, Congress enacted the Real Estate Settlement Procedures Act (RESPA) to address problems in the real estate settlement process including:
- abusive practices that increased costs to homebuyers
- lack of understanding about the settlement process and its costs
RESPA's purpose is twofold:
- to provide consumers with information about the real estate mortgage transaction and the costs associated with it
- to prohibit certain practices, such as referral fees between settlement service providers, that result in higher costs and reduced quality to consumers
check out more RESPA information