RESPA is an acronym used in the field of Real Estate and Lending meaning Real Estate Settlement Procedures Act.

Formed by Congress in 1974, RESPA in meant to curb abusive practices that proved to be costly to home-buyers and to increase the understanding of the settlement processes and cost associated with buying a home.  RESPA's purpose has two main objectives:

1) to provide consumers with information about the real estate mortgage transaction and the costs associated with it *Realtor.org

2) to prohibit certain practices, such as referral fees between settlement service providers, that result in higher costs and reduced quality to consumers *Realtor.org

Basically, whenever you see an ad for a certain loan RESPA will require certain disclosures to accompany it in the text so you know what all the "legalese" means to the average person.  RESPA also has a lot of requirements for the HUD-1 statement you will receive at the closing.  The HUD-1 is basically a receipt of the home purchase transaction.  So in your next transaction if you keep hearing the term RESPA, just remember it is an Act of Congress established to protect the public/you from predatory (individuals/companies) that may take advantage of your transaction.  For more information visit us here.