RESPA Guidelines
Are you aware how RESPA guidelines protect your rights in real estate transactions? RESPA was established to help consumers become better shoppers for settlement services and to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services. The Real Estate Settlement Procedures Act (RESPA) establishes the minimum guidelines by which all companies must abide by.
RESPA guidelines impose strict disclosure guidelines. Contact and Find USA Real Estate Agent for more information on RESPA guidelines.
RESPA requires that borrowers receive disclosures at various times. Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices and describe business relationships between settlement service providers.
RESPA disclosures include:
- Special Information Booklet
- Good Faith Estimate
- Apraisals
- Truth In Lending
- Mortgage Servicing Disclosure
RESPA also prohibits certain practices that increase the cost of settlement services. Section 8 of RESPA prohibits a person from giving or accepting any thing of value for referrals of settlement service business related to a federally related mortgage loan. It also prohibits a person from giving or accepting any part of a charge for services that are not performed. Section 9 of RESPA prohibits home sellers from requiring home buyers to purchase title insurance from a particular company.
RESPA guidelines impose strict disclosure guidelines. Contact and Find USA Real Estate Agent for more information on RESPA guidelines.
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