WHAT DOES RESPA MEAN?

If you are in the process of purchasing a home, you will probably hear the word “RESPA” in connection with your loan.  As a result of new HUD regulations, RESPA h as become an important term that everybody involved in the loan process must understand.

So what does “RESPA” stand for:  Real Estate Settlement Procedures Act.  As of January 1, 2010, HUD requires that loan originators issues a Good Faith Estimate that discloses loan terms and closing costs.  The new regulations also outlaws “kickback” that increase the cost of settlement services.  The new procedures are designed to protect homebuyers.

In order to better understand the new regulations, click here