What is the Real Estate Settlement Procedures Act (RESPA)?

The Real Estate Settlement Procedures Act, or RESPA, is a federal law that requires lenders to provide borrowers with disclosures about settlement costs, prohibits kickbacks and referral fees between settlement service providers, and limits escrow account deposits. RESPA requires a Loan Estimate within three business days of loan application and a Closing Disclosure at least three business days before closing. The Consumer Financial Protection Bureau enforces RESPA.