What is RESPA?
RESPA refers to the Real Estate Settlement Procedures Act. It is a federal law passed by Congress in 1974 and intended to protect those who are purchasing real estate. It essentially aims to prevent unfair practice by brokers, real estate agents, closing service providers, and others involved in the transaction.
What are some common examples of RESPA violations?
Many different practices might be considered RESPA violations. A few include:
- Trading a referral of a settlement service for money or gifts
- Inflating common fees
- Overcharging for services like pulling up a credit report
- Covering up kickbacks with shell entities
If I’m buying real estate, how do I recognize if RESPA violations are happening?
When you’re new to real estate or just aren’t someone who buys property often enough to know the ins and outs of the process, RESPA violations can easily occur without you realizing. This can especially be an issue for first time homebuyers. Don’t let anyone take advantage of you. An experienced real estate attorney can recognize when a RESPA violation is occurring and defend your best interests.
If I suspect that a RESPA violation has occurred in the past, how long do I have to do something about it?
You have three years from the date of the violation to bring a suit against the loan servicer. If more than three years have passed, there is unfortunately not much you can do about it.
Who enforces RESPA?
RESPA used to be enforced by the U.S. Department of Housing and Urban Development (HUD). However, in 2011, the Consumer Financial Protection Bureau (CFPB) took over. This was a result of the Dodd-Frank Wall Street Reform and Consumer Protection legislation.
Who can help me protect myself in real estate transactions and guide me in how to proceed if I believe I experienced a RESPA violation in the past?
At Auricchio Law Offices, we have the experience and knowledge to help you with all of your real estate transactional and litigation needs. We are committed to fighting for what is right and protecting our clients’ best interests. If you are interested in learning more about our services, we would love to hear from you. Contact our firm today!
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