The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601, et seq.) ("RESPA"), which is now implemented by CFPB Regulation X, requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process. Similar to the Truth in Lending Act (see the topic page on TILA), RESPA is intended to ensure that consumers have standardized cost information about borrowing.
RESPA seeks to protect consumers from unnecessarily high real estate settlement costs by providing them with information about the costs required to close a mortgage loan transaction and by prohibiting certain business practices. In addition, RESPA prohibits business practices that are unethical or unnecessarily increase the cost of settlement services.