RESPA

The full definition

The federal statute regulating residential settlement disclosure and prohibiting kickbacks or unearned fees for referring settlement service business.

Also called: Real Estate Settlement Procedures Act.

Which related terms should you know?

These are the terms that come up alongside respa in the same file.

Closing Disclosure

The federal disclosure listing a residential borrower's loan terms, closing costs and cash to close. It is delivered at least three business days before the loan is consummated.

Closing statement

The itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer mortgage closings pair it with the Closing Disclosure.

Premium (title insurance)

The one-time charge for a title policy, computed from the filed New York rate schedule by amount of insurance, plus any endorsement and search-related charges.

Title insurance

Insurance against loss from title defects that existed before the policy date. New York premiums come from a filed rate schedule, so the figure is calculated rather than negotiated.

Underwriter (title)

The insurer whose policy is issued on a transaction. An agency prepares and issues on the underwriter's forms, and claims are ultimately paid by the underwriter.

What else should you read before closing?