RESPA Attorneys Columbus Ohio
Real Estate Settlement & Procedures Act (RESPA)
RESPA is a federal consumer protection law overseen by the U.S. Department of Housing and Urban Development (HUD) that aims at protecting home buyers. Below is a list of of important protections RESPA provides to consumers:
- Requires lenders, mortgage brokers, or
servicers of home loans to provide home buyers with certain disclosures at various times during the transaction process. This helps consumers be better shoppers for settlement services.
- Requires mortgage servicers to halt the foreclosure process and foreclosure sale if the mortgage servicer receives a complete loss mitigation application (loan modification packet).
- Requires mortgage servicers to respond to and investigate consumers written disputes (Notices of Error) and requests for information.
- Protects consumers by eliminating kickbacks and referral fees that can increase the costs of certain settlement services.
- Provides borrowers with timely notices regarding th additional information the mortgage servicer needs for the borrower’s loss mitigation (loan modification) application to be complete.
- Mortgage servicers must wait until a loan is 120 days delinquent to file foreclosure.
- Allows borrowers/consumers to pursue certain private causes of actions against mortgage servicers to recover damages and attorney fees.