What does RESPA stand for?

RESPA stands for the Real Estate Settlement Procedures Act. This federal law was enacted to provide homebuyers and sellers with information about the closing process and to protect them from abusive practices during the real estate settlement process. It requires that borrowers receive disclosures about the costs associated with settlement services, which helps them understand and compare the various fees involved in the transaction.

The act plays a critical role in ensuring transparency and integrity in the real estate settlement process, making it a fundamental piece of legislation in residential real estate transactions. It helps to eliminate unnecessary fees and reduces the risk of closing delays for buyers and sellers.