Closings glossary

RESPA

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

What is RESPA?

Quick Answer

RESPA is the federal Real Estate Settlement Procedures Act, which governs disclosures and settlement practices on most residential mortgage loans. It requires standardized cost disclosure and bans kickbacks and unearned fees for referrals of settlement services, including title work on a New York purchase.

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.

Where does respa come up in a New York City closing?

A referral arrangement that pays a fee for sending title business on a Bronx closing is a RESPA problem regardless of how the payment is labeled.

What else should you read before closing?

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