Playing By The Rules: Some commonly asked question about Respa

What does the Real Estate Settlement Procedures Act cover?

A: Federally related mortgage loans, including home purchase loans, refinancings, property improvement loans, equity lines of credit and reverse mortgages.

A credit reporting agency wants to give my bank a dedicated printer to speed communications. Is this allowed?

A: As long as the printer is used strictly for communicating between the two parties, it will not be considered payment for referring business.

Our bank received a referral from a mortgage broker for a car loan. Are we allowed to pay the broker a referral fee?

A: Yes. Fees unrelated to a real estate transaction are allowed.

Our board includes a lawyer whose firm sometimes handles our settlement service requirements. If we refer business to the firm but not directly to the lawyer, must the relationship still be disclosed?

A: Yes. The firm as a whole is considered an affiliated business.

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