With foreclosures continuing to occur at unprecedented levels, consumers and legal teams are pulling out all of the stops in preventing them from occurring or seeking damages from lenders. One of the acronyms en vogue at the moment is RESPA. What is RESPA?
The Real Estate Settlement Procedures Act (RESPA) was enacted in 1974 to provide consumers with disclosure about closing costs and to prohibit unearned fees (kickbacks/referral fees). Subsequent amendments to RESPA pertain to Controlled Business Arrangements (CBA) and Computerized Loan Originations (CLO). Ignorance is not a defense to a RESPA violation. Education is required to ensure complete compliance with all RESPA requirements. An example of a RESPA offense would be if a real estate broker or sales associate accepted money from mortgage lenders for steering homebuyers to the lenders. Insufficient disclosure to consumers by firms involved in CBAs is another common violation. RESPA is a difficult federal law. Violations can be a serious federal crime. REALTORS ® are urged to secure particular, current, legal advice applicable to their specific situation before they act.
This is one area of the law that we research when a consumer is facing trouble with a lender. Was it done correctly? Did the lender comply with the law. If you are suspicious that your lender was possibly in violation of this, contact the LAw Office of Andrew Farmer at (865) 428-6737. We are here to help! We help homeowners in Sevierville, Pigeon Forge, and Gatlinburg stop foreclosure. Let us help you.