An acronym that stands for the Real Estate Settlement Procedures Act, a federal consumer protection law originally implemented in 1974 governing loans on one to four-family properties and requires, among other matters, that a lender provide an advance notice of estimated closing costs, establishes guidelines for escrow account balances and prohibits “kickbacks” to parties for referring business associated with the loan.
The Real Estate Settlement Procedures Act (RESPA) was a law passed by the United States Congress in 1974 and codified as Title 12, Chapter 27 of the United States Code, 12 U.S.C. §§ 2601–2617. The main objective was to protect homeowners by assisting them in becoming better educated while shopping for real estate services, and eliminating kickbacks and referral fees which add unnecessary costs to settlement services. RESPA requires lenders and others involved in mortgage lending to provide borrowers with pertinent and timely disclosures regarding the nature and costs of a real estate settlement process. RESPA was also designed to prohibit potentially abusive practices such as kickbacks and referral fees, the practice of dual tracking, and imposes limitations on the use of escrow accounts.
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| Long title | Real Estate Settlement Procedures Act of 1974 |
|---|---|
| Acronyms (colloquial) | RESPA |
| Enacted by | the 93rd United States Congress |
| Effective | Dec. 22, 1974 |
| Citations | |
| Public law | P.L. 93-533 |
| Statutes at Large | 88 Stat. 1724 |
| Codification | |
| Titles amended | 12 |
| U.S.C. sections created | 2601-2617 |
| Legislative history | |
| |
| Major amendments | |
| P.L. 94-205, 89 Stat. 1157 (1976) | |
Finnish
Pronunciation
- IPA(key): /ˈrespɑ/, [ˈre̞s̠pɑ]
- Rhymes: -espɑ
- Syllabification: res‧pa
Noun
respa
- (colloquial) reception (front desk)
