what is the real estate settlement procedures act respa 
the real estate settlement procedures act respa was enacted by the u s congress in 1975 to provide homebuyers and sellers with complete settlement cost disclosures respa was also introduced to eliminate abusive practices in the real estate settlement process prohibit kickbacks and limit the use of escrow accounts respa is a federal statute now regulated by the consumer financial protection bureau cfpb understanding the real estate settlement procedures act respa initially passed by congress in 1974 respa became effective on june 20 1975 respa has been impacted over the years by several changes and amendments enforcement initially fell under the jurisdiction of the u s department of housing and urban development hud after 2011 those responsibilities were assumed by the cfpb because of the dodd frank wall street reform and consumer protection act 2from its inception respa has regulated mortgage loans attached to one to four family residential properties the objective of respa is to educate borrowers regarding their settlement costs and eliminate kickback practices and referral fees that can inflate the cost of obtaining a mortgage the types of loans covered by respa include the majority of purchase loans assumptions refinances property improvement loans and home equity lines of credit helocs 1respa does not apply to extensions of credit to the government government agencies or instrumentalities or in situations where the borrower plans to use property or land primarily for business commercial or agricultural purposes respa requirementsrespa requires lenders mortgage brokers or servicers of home loans to disclose to borrowers any information about the real estate transaction the information disclosure should include settlement services relevant consumer protection laws and any other information connected to the cost of the real estate settlement process business relationships between closing service providers and other parties connected to the settlement process also should be disclosed to the borrower 3