The Real Estate Settlement Procedures Act (RESPA) is a federal statute which ensures that certain important information is made available to home buyers. Among other things, RESPA requires certain disclosures so that home purchasers can make better informed decisions and prohibits certain unlawful practices that drive up costs for homebuyers, including undisclosed fees and kickbacks.
Depending on which section of the RESPA has been violated, you only have between one and three years to file suit, so it is important to take action as you discover a RESPA violation. In recent years, lawsuits have increasingly been brought against mortgage lenders for insufficiently responding to requests for information (RFI) brought by borrowers. Providing information to borrowers is just one of many obligations of mortgage lenders under RESPA.
You may have experienced a RESPA violation if your lender:
- Failed to provide you with a good faith estimate of the interest rate and fees that you will be charged within three days of applying for a loan.
- Charged you fees at closing that were not disclosed on your good faith estimate or were higher than disclosed.
- Required you to use an affiliated title insurance company.
- Received kickbacks from a settlement agent, title insurance company, flood zone determination vendor, or other business that provided products or services in connection with the closing of your loan.
- Held excessive amounts in escrow or mishandled your escrow funds.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation.
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