Real Estate Settlement Procedures Act (RESPA)

A U.S. Housing and Urban Development (HUD) consumer protection statute, designed to assist consumers in shopping for the lowest cost mortgages and to avoid costly or harmful loan offers, requiring that lenders and mortgage brokers provide standard disclosures at various times in a transaction and outlawing kickbacks that increase the cost of settlement services. Standard ╥good faith estimates╙ provided by a mortgage lenders or brokers disclose the estimated and itemized amount of fees and associated costs likely to be incurred in connection with a mortgage transaction including: closing costs, inspections, title insurance, taxes and other charges; this estimate must be provided within three business days of applying for a loan.