Finance & Mortgages

    RESPA (Real Estate Settlement Procedures Act)

    A federal law that governs disclosures in residential mortgage settlements and prohibits kickbacks and unearned fees.

    The Real Estate Settlement Procedures Act is a federal law that applies to most residential mortgage loans. It requires lenders to give borrowers disclosures about settlement costs and, under Section 8, prohibits kickbacks, referral fees, and unearned fees among settlement service providers.

    Under the combined TRID rule, RESPA and the Truth in Lending Act require the Loan Estimate within three business days of application and the Closing Disclosure at least three business days before closing.

    On the exam

    RESPA Section 8 bans kickbacks and unearned fees. Pair it with the TRID disclosure timing.

    Exam trap

    A referral fee paid just for sending business, with no service performed, violates RESPA Section 8.

    Tested in

    Residential Mortgages (9% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.