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Mortgage Glossary
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RESPA is the the acronym for the Real Estate Settlement Procedures Act, passed in 1974. It is a federal statute enforced by the U.S. Department of Housing and Urban Development (HUD) and mandates full disclusure to borrowers all closing costs, loan servicing and escrow practices, and the business relationships between closing services (usually title companies) and the other parties to the transaction. RESPA covers mortgage loans on 1 to 4 family residential properties. Most purchases, assumption, refinances, home improvement loans, and home equity lines of credit (HELOCs) are covered by RESPA.
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