Borrowers, Lenders, and Processing Payments

The Real Estate Settlement Procedures Act (RESPA) is a federal consumer protection law that regulates the real estate settlement process, including the servicing of loans and the assignment of those loans. RESPA places a number of duties on lenders and loan servicers, including requirements that borrowers be given notice by both a transferor and a transferee when their loan is transferred to a new lender or servicer, and that loan servicers respond promptly to borrowers' written requests for information. It takes a qualified written request to trigger the loan servicer's duties under RESPA to acknowledge and respond. RESPA defines a … [Read more...]