In real estate finance, R.E.S.P.A. stands for the Real Estate Settlement Procedures Act, a federal law enacted to protect consumers in residential real estate transactions. It is designed to promote transparency and fairness in the settlement and closing process.
R.E.S.P.A. requires lenders and settlement service providers to disclose settlement procedures, costs, and fees to borrowers using standardized forms. The law also prohibits certain practices, such as kickbacks and unearned fees, to help ensure that borrowers can better understand and compare the true cost of real estate financing.
