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Real Estate Settlement Procedures Act

Real Estate Settlement Procedures Act helps students identify activities, disclosures and specific job responsibilities that are required by the Real Estate Settlement Procedures Act (RESPA), one of the many consumer protection laws that govern financial institutions and mortgage lenders. After an overview of the history of the law, its purpose, and the extent of it coverage, the course identifies the eight RESPA disclosures required at different stages of the home buying process and provides examples of each form. After completing this course, students will be able to protect themselves, their financial services institution, and, most importantly, the consumers they assist in the home buying process.

Audience

Bank personnel involved in the lending process, including mortgage, consumer and small business lenders, loan processors and loan servicers.

Learning Objectives

After completing this course, students will be able to:

• Identify activities prohibited by RESPA
• Describe the four aspects of mortgage lending governed by RESPA
• Identify the types of loans covered by RESPA
• Identify the disclosures associated with the home buying process
• Describe the Good Faith Estimate form
• Describe the Special Information Booklet
• Describe the Servicing Disclosure Statement
• Describe the Affiliated Business Arrangement disclsoure
• Describe the HUD-1 Settlement Statement
• Determine borrower settlement costs using the HUD-1 Settlement Statement
• Describe the Escrow Account Disclosure 
• Identify the activities prohibited by RESPA
• Define kickbacks and unearned fees
• Describe settlement charges permitted by RESPA
• Describe the purpose of RESPA's escrow account procedures
• Describe the aggregate analysis procedure
• Identify RESPA's rules for handling surpluses, shortages, and deficiencies
• Describe the annual statement requirements of RESPA.