Since quite a few questions on the NMLS national exam deals with RESPA I thought we could have a RESPA refresher.
RESPA (Real Estate Settlement Procedures Act) was passed by congress in 1974 to prohibit kickbacks between lenders, realtors, construction companies, and title insurance companies. RESPA requires lenders to provide a GFE and HUD-1 statements at the closing of a loan. RESPA is Regulation X and you can remember this by calling it REXPA.
Knowing all aspects of RESPA can help you pass on your exam!
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