Refresh yourself on RESPA

Feel a bit rusty when it comes to the Real Estate Settlement Procedures Act (RESPA)? Congress passed RESPA in 1974 to protect consumers and ensure fair competition in the mortgage shopping process. It may be time for a refresher

course, especially since the U.S. Department of Housing and Urban development (HUD) continues to strictly enforce its laws and provisions.

RESPA covers many subjects. The most important deal with compensation agreements that involve giving or accepting anything of value for referrals associated with federally-related mortgage loans. Section 8 of RESPA strictly prohibits kickbacks, fee-splitting and unearned fees. Violations are subject to fines up to $10,000 and one-year imprisonment. If a private lawsuit is filed, the defendant can be liable for an amount equal to three times the charge paid for the service.

Home sellers cannot require buyers to purchase settlement services from a particular company -- directly or indirectly -- as a condition of sale. If found in violation, Section 9 allows the purchaser to sue the seller for an amount equal to three times all charges made for the title insurance. To stay current on all RESPA rules, regulations and guidelines, visit the HUD website at:

www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm

Have a great week!

Rob

Robert L. Rauf

www.RobertRaufHomeLoans.com

(732)740-0175

Robert_Rauf@countrywide.com

building Financial Security, One home owner at a time