Author Question: What are the goals of the Real Estate Settlement Procedures Act? What will be an ideal ... (Read 78 times)

xclash · **on:** Aug 2, 2018

What are the goals of the Real Estate Settlement Procedures Act?

What will be an ideal response?

Question 2

What is the purpose of the HUD-1 Settlement Statement?

What will be an ideal response?

stano32 · **Reply #1 on:** Aug 2, 2018

Answer to Question 1

RESPA was enacted to regulate and reform lending practices and closing and settlement procedures. The goal was to ensure that consumers are advised of all the costs related to the real estate transaction in easily understood terms. Another goal is to give regularity to the settlement process and to thwart unfair and fraudulent practices.

Answer to Question 2

The HUD-1 Settlement Statement is the summary of the financial transaction for the purchase and sale of the real estate. It is typically prepared by the closing agent, but all of the parties have some statutory responsibility to provide the seller or the buyer with an estimate of closing costs during the pendency of the sale.