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====== Real Estate Settlement Procedures Act (RESPA) ======

**RESPA** is a federal law designed to **protect consumers** in real estate transactions by **requiring disclosures** and **prohibiting abusive practices** in the settlement process.

===== Key Purposes =====
  * Ensure buyers receive **clear disclosure** of settlement costs
  * Eliminate **kickbacks and referral fees**
  * Prevent unnecessarily high settlement charges

===== Transactions Covered =====
  * Residential properties with **1–4 units**
  * Federally related mortgage loans
  * Purchase loans, refinances, and certain assumptions

===== Prohibited Practices =====
  * **Kickbacks** for referrals
  * **Unearned fees** (fees for services not actually performed)
  * Fee splitting except for actual services rendered

===== Required Disclosures =====
  * Loan Estimate (LE)
  * Closing Disclosure (CD)
  * Servicing disclosure
  * Affiliated business arrangement disclosure (if applicable)

===== Escrow Account Rules =====
  * Limits how much a lender may require in escrow
  * Requires annual **escrow account statements**

===== Enforcement and Penalties =====
  * Enforced by the **Consumer Financial Protection Bureau (CFPB)**
  * Civil and criminal penalties may apply

===== Exam Tip =====
  * RESPA applies to **residential**, not commercial, transactions
  * RESPA focuses on **disclosure and anti-kickback rules**