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

• Ensure buyers receive clear disclosure of settlement costs
• Eliminate kickbacks and referral fees
• Prevent unnecessarily high settlement charges

• Residential properties with 1–4 units
• Federally related mortgage loans
• Purchase loans, refinances, and certain assumptions

• Kickbacks for referrals
• Unearned fees (fees for services not actually performed)
• Fee splitting except for actual services rendered

• Loan Estimate (LE)
• Closing Disclosure (CD)
• Servicing disclosure
• Affiliated business arrangement disclosure (if applicable)

• Limits how much a lender may require in escrow
• Requires annual escrow account statements

• Enforced by the Consumer Financial Protection Bureau (CFPB)
• Civil and criminal penalties may apply

• RESPA applies to residential, not commercial, transactions
• RESPA focuses on disclosure and anti-kickback rules