What does the acronym RESPA stand for?

The acronym RESPA stands for the Real Estate Settlement Procedures Act. This legislation, originally passed in 1974, aims to ensure consumers receive relevant information about the costs and procedures associated with real estate settlements. By mandating that loan servicers provide clear disclosures, RESPA assists borrowers in understanding their mortgage transactions, thus protecting them from unfair practices, and ensuring that they are aware of any settlement-related costs. This act plays a crucial role in the mortgage industry by promoting transparency and helping to standardize settlement processes, ultimately fostering a more equitable environment for consumers.