2007-05-18 09:07:42 · 2 answers · asked by drsaxisback 1 in Business & Finance ➔ Renting & Real Estate
The Real Estate Settlement Procedures Act (RESPA) is a Federal statute that requires real estate transactions financed by Federally insured mortgages or Federal institutions to treat and disclose closing charges ("costs") in a uniform manner. The Department of Housing and Urban Development (HUD) prescribes a so-called HUD-1 form that lists & gives numerical codes to certain charges. Using a HUD-1 as a closing statement establishes the presumption that the closing agent has complied with RESPA. Secondary market Mortgage buyers will normally not accept mortgages that do not have signed HUD-1's & certain other prescribed RESPA documents in the file.
2007-05-18 09:52:44 · answer #1 · answered by Anonymous · 1⤊ 0⤋
RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.
2007-05-18 09:16:31 · answer #2 · answered by acermill 7 · 0⤊ 0⤋