Real Estate Lenders and Agents RESPA Update - FREE!

Real Estate Lenders and Agents,

There are changes to the TILA-RESPA regulations that will become effective this August. The Chamber and Knowles & Sullivan LLC are partnering to offer a FREE seminar to educate our area agents and lenders before the changes take effect. 

Join us on Friday, July 24, 2015 from 11:45 am until 1 pm in the Chamber Board Room to learn about the changes. Feel free to bring a brown bag lunch. Sodas, water and coffee will be provided.

This is not a sales pitch. There are no strings attached. The attorneys at Knowles & Sullivan have volunteered to offer their expertise to help our area agents and lenders stay abreast of these changes in order to keep the area real estate industry sector strong and effective. 


 

The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. The purposes of RESPA are

1. to help consumers become better shoppers for settlement services and
2. to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.

Corresponding with the above purposes:

1. RESPA requires that borrowers receive disclosures at various times. Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices and describe business relationships between settlement service providers. 

2. RESPA also prohibits certain practices that increase the cost of settlement services. Section 8 of RESPA prohibits a person from giving or accepting anything of value for referrals of settlement service business related to a federally related mortgage loan. It also prohibits a person from giving or accepting any part of a charge for services that are not performed. Section 9 of RESPA prohibits home sellers from requiring home buyers to purchase title insurance from a particular company.

RESPA In General

RESPA covers loans secured with a mortgage placed on a one-to-four family residential property. These include most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit. HUD's Office of RESPA and Interstate Land Sales is responsible for enforcing RESPA.