Flat Fee Home Selling Made Easy!

RESPA

HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form. HUD explains that rebates are permitted by RESPA . .

RESPA stands for the Real Estate Settlement Services Procedures Act. RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

RESPA's purpose is twofold:

• to provide consumers with information about the real estate mortgage transaction and the costs associated with it
• to prohibit certain practices, such as referral fees between settlement service providers, that result in higher costs and reduced quality to consumers

2601 Congressional Findings and Purpose 2602 Definitions 2603 Uniform Settlement Statement 2604 Special Information Booklets 2605 Servicing of Mortgage Loans and Admn. of Escrow Accounts 2606 Exempted Transactions 2607 Prohibition against Kickbacks and Unearned Fees 2608 Title Companies 2609 Escrow Accounts 2610 Prohibition of Fees for Preparation of Truth-in-Lending, Uniform Settlement, and Escrow Account Statements 2611 to 2613 Repealed 2614 Jurisdiction of Courts and Limitations 2615 Validity of Contracts and Liens 2616 State laws unaffected; inconsistent Federal and State provisions 2617 Authority of the Secretary Amendment Amends various sections of the Statute.