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Modules
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Certificate of
Participation

RESPA

The final accounting prepared for the Closing is commonly referred to as the "RESPA" form which stands for the Real Estate Settlement Procedures Act, passed by Congress in 1974 in response to consumer complaints. Mortgage processing fees can vary depending on the mortgage loan selected and the lender. Ask lenders what they charge for:

• loan application fee
• credit report
• lender's attorney
• title insurance
• document preparation.

As required by RESPA, lenders are required to give you a "good faith estimate" within three days of your loan application to advise you of your anticipated closing costs and a copy of a booklet entitled Settlement Costs, published by HUD (Housing and Urban Development). The good faith estimate is a ballpark figure but it gives you a good idea of what to expect. The final accounting of your costs will appear on the RESPA (Real Estate Settlement Procedures Act) statement that you will receive just before or at your closing. The form is also referred to the HUD-1 form because it is an official HUD settlement form that must be used in almost all residential mortgage loans.