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Complete glossary lessonNational exam concept

Real Estate Settlement Procedures Act (RESPA)

RESPA is the federal law governing specified settlement practices for covered federally related mortgage loans.

Official area

Financing

Knowledge cluster

Federal mortgage law

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

What does Real Estate Settlement Procedures Act (RESPA) mean in real estate?

RESPA is the federal law governing specified settlement practices for covered federally related mortgage loans. Among other protections, it prohibits kickbacks and unearned referral fees for settlement-service business and requires disclosures implemented by Regulation X.

How is Real Estate Settlement Procedures Act (RESPA) different from the closest exam answer?

RESPA focuses on settlement practices and referral compensation. TILA focuses on the cost and terms of consumer credit, implemented by Regulation Z.

What is the Georgia-specific rule?

RESPA applies to covered Georgia transactions as federal law. A state licensee's separate Georgia compensation and disclosure duties still apply alongside it.

Worked exam example

Scenario

A title provider pays an agent solely for sending closing clients, with no actual compensable service performed. The arrangement raises RESPA Section 8 concerns.

Decision rule

RESPA focuses on settlement practices and referral compensation. TILA focuses on the cost and terms of consumer credit, implemented by Regulation Z.

What is the most common exam trap?

Trap correction

A referral payment is not lawful simply because it is disclosed to the consumer.

Memory cue: A referral payment is not lawful simply because it is disclosed to the consumer.

Original exam check

Apply the definition

Which statement correctly explains Real Estate Settlement Procedures Act (RESPA)?

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Related terms to learn next

Truth in Lending Act (TILA)

TILA is the federal consumer-credit law requiring standardized disclosure of credit costs and terms, including finance charges and annual percentage rate, and governing specified advertising and rescission rights through Regulation Z.

TILA-RESPA Integrated Disclosures (TRID)

TRID is the federal integrated-disclosure framework that combines specified TILA and RESPA mortgage information into the Loan Estimate and Closing Disclosure for most covered closed-end consumer mortgages.

Equal Credit Opportunity Act (ECOA)

ECOA is the federal law prohibiting creditors from discriminating in any aspect of a credit transaction on protected bases specified by the Act and Regulation B.

Closing attorney

A closing attorney is the Georgia-licensed lawyer who conducts the legal closing, oversees execution and disbursement, and handles the conveyancing and title-related legal work that constitutes the practice of law.

Recommended next complete lesson

Continue with Financing complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
Previous termPrivate mortgage insurance (PMI)Next term Truth in Lending Act (TILA)

Real Estate Settlement Procedures Act (RESPA) quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is Real Estate Settlement Procedures Act (RESPA)?

RESPA is the federal law governing specified settlement practices for covered federally related mortgage loans.

What is Real Estate Settlement Procedures Act (RESPA) commonly confused with?

RESPA focuses on settlement practices and referral compensation. TILA focuses on the cost and terms of consumer credit, implemented by Regulation Z.

How does Georgia treat Real Estate Settlement Procedures Act (RESPA)?

RESPA applies to covered Georgia transactions as federal law. A state licensee's separate Georgia compensation and disclosure duties still apply alongside it.