Federal law applicable for residential property closings that requires lenders to disclose all known or estimated settlement costs for new loans, as well as provide borrower with specified disclosures regarding the loan terms, features and costs. RESPA is not applicable with all-cash, installment or assumption purchases.
In addition, RESPA prohibits kickbacks between lenders and service providers, limits the reserve buffer for escrow accounts, prohibit lenders from charging a fee to prepare a settlement statement and requiring lenders to provide the settlement statement at least one day prior to closing. For more information, see the "Regulatory Requirements" article in the "Mortgage Industry" section.
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