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Mortgage Glossary

RESPA (Real Estate Settlement Procedures Act)

Mike Starr·Reviewed August 2026

The Real Estate Settlement Procedures Act is a federal law that requires lenders to provide borrowers with timely disclosures about the nature and costs of the settlement (closing) process. RESPA prohibits kickbacks and unearned fees between settlement service providers, limits escrow account cushions, and gives borrowers the right to request a HUD-1 or Closing Disclosure before closing.