Investopedia

Continue to Site »

Real Estate Settlement Procedures Act - RESPA

Filed Under »
Dictionary Says

Definition of 'Real Estate Settlement Procedures Act - RESPA'

This act was designed to protect potential homeowners and enable them to become more intelligent consumers. RESPA requires that lenders provide greater amounts of information to prospective borrowers at certain points in the loan settlement process. It also prohibits the various parties involved from paying kickbacks to each other.
Investopedia Says

Investopedia explains 'Real Estate Settlement Procedures Act - RESPA'

Originally passed by Congress in 1974, the latest RESPA regulations were published on November 17, 2008 and were scheduled to go into effect on January 1, 2010. Before this act was created, it was a common practice for a lender to advertise a loan at a certain rate of interest provided the borrower use the lender's title insurance company or other affiliate at a greatly inflated price. The affiliate would then pay the lender a portion of the inflated fee as a kickback.

Articles Of Interest

  1.

    A Tax Primer For Homeowners

    Go beyond interest and find out how mortgage points affect your taxable income.

  2. The REIT Way

    Ever considered investing in real estate? Read about the REIT and see if it's the investment for you.

  3. Avoid Capital Gains Tax On Your Home Sale

    If you have property to sell and want to avoid capital gains tax, a Section 1031 exchange may be the answer.

  4. Understanding The Mortgage Payment Structure

    We explain the calculation and payment process as well as the amortization schedule of home loans.

  5. Is Relying On Home Equity For Retirement A Good Idea?

    Of Americans aged 50 to 70, 47% have reported that they are relying on home equity to fund their retirements.

  6. Profit From Mortgage Debt With MBS

    Mortgage-backed securities can offer monthly income, a fixed interest rate and even government backing.

  7. Are Distressed Homes Worth Buying?

    Here's a look at whether it is a good idea to buy a rundown home to repair for profit.

  8. Advantages And Disadvantages Of Using A Mortgage Broker

    Mortgage brokers may be able to find you the loan of your dreams, but you should consider the potential downsides before hiring one.

  9. Reasons Renting Is Better Than Buying

    Owning a home is much more expensive than renting. Here are the places where the costs differ greatly.

  10. 4 Most Expensive Homes In America

    These luxurious homes are exclusively for the one percenters. Each property sold for huge sums and features extravagant renovations.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center