During the Course of The Loan One of its purposes is to assist consumers become better shoppers for settlement services. Another purpose is to remove kickbacks and recommendation fees that increase needlessly the expenses of specific settlement services. RESPA requires that borrowers get disclosures at different times. Some disclosures spell out the costs connected with the settlement, overview lending institution servicing and escrow account practices and explain business relationships in between settlement provider. RESPA also restricts particular practices that increase the cost of settlement services. Section 8 of RESPA forbids a person from offering or accepting anything of value for recommendations of settlement service company related to a federally associated mortgage loan. It also forbids an individual from offering or accepting any part of a charge for services that are not performed. Section 9 of RESPA prohibits home sellers from needing home purchasers to acquire title insurance coverage from a particular company. Generally, RESPA covers loans protected with a mortgage put on a one-to-four household house. These consist of most buy loans, presumptions, refinances, residential or commercial property improvement loans, and equity lines of credit. HUD's Office of Consumer and Regulatory Affairs, Interstate Land Sales/RESPA Division is accountable for enforcing RESPA. More RESPA Facts DISCLOSURES: Disclosures At The Time Of Loan Application When borrowers request a mortgage loan, mortgage brokers and/or loan providers need to give the debtors: - an Unique Information Booklet, which contains consumer details regarding different property settlement services. (Required for purchase deals just). - a Great Faith Estimate (GFE) of settlement costs, which notes the charges the purchaser is likely to pay at settlement. This is only a quote and the actual charges might vary.