What is respa?

RESPA stands for the Real Estate Settlement Procedures Act, which is a federal law passed in 1974 to protect homebuyers by requiring lenders to provide them with timely and accurate information about the closing costs of their mortgage loans. RESPA also prohibits the giving and receiving of kickbacks or referral fees in the mortgage industry. Additionally, RESPA mandates that borrowers receive certain disclosures from their mortgage servicers regarding the servicing of their loans. The Consumer Financial Protection Bureau (CFPB) enforces RESPA, and violations can result in penalties and fines for lenders and other service providers.