HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form. HUD explains that rebates are permitted by RESPA .

RESPA stands for the Real Estate Settlement Services Procedures Act. RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

RESPA's purpose is twofold:

• to provide consumers with information about the real estate mortgage transaction and the costs associated with it
• to prohibit certain practices, such as referral fees between settlement service providers, that result in higher costs and reduced quality to consumers

	2601 Congressional Findings and Purpose
	2602 Definitions
	2603 Uniform Settlement Statement
	2604 Special Information Booklets
	2605 Servicing of Mortgage Loans and Admn. of Escrow Accounts
	2606 Exempted Transactions
	2607 Prohibition against Kickbacks and Unearned Fees
	2608 Title Companies
	2609 Escrow Accounts
	2610 Prohibition of Fees for Preparation of Truth-in-Lending, Uniform Settlement, and Escrow Account Statements
	2611 to 2613 Repealed
	2614 Jurisdiction of Courts and Limitations
	2615 Validity of Contracts and Liens
	2616 State laws unaffected; inconsistent Federal and State provisions
	2617 Authority of the Secretary
	Amendment Amends various sections of the Statute.

See also: The Closing Process

See also: What consumers should know about federally related mortgage transactions

See also: New RESPA Rule FAQs

The links and Appendices on this page take you to the most current Government Printing Office versions of the Real Estate Settlement Procedures Act Rule.

	24 CFR Part 3500 Final Rule as of 2009
	24 CFR Part 3800 Final Rule as of 2009

Appendices

	Appendix A Instructions for Completing HUD-1 and HUD-1-A Settlement Statements; Sample HUD-1 and HUD-1-A Settlement Statements
	Appendix B Illustrations of Requirements of RESPA
	Appendix C Sample Form of Good Faith Estimate
	Appendix D Affiliated Business Arrangement Disclosure Format
	Appendix E Arithmetic Steps Illustrating Aggregate Analysis

 
See also: Withdrawal of definition of “Required Use”