09/1/26
Don’t fall behind when it comes to your RESPA compliance
Let’s be honest: RESPA sounds intimidating. But there’s no reason to worry if you’re doing things right every day. After all, staying compliant shouldn’t be a battle. In fact, you can use it as proof that you always put clients first!
Here’s what to know:
RESPA stands for the Real Estate Settlement Procedures Act, and these rules have been in place since 1975. RESPA is designed to give buyers and sellers more transparency in the transaction, and we’re all for that. While we love our partners and the referrals they send our way, these rules also prohibit “kickbacks,” meaning none of us in real estate can pay for referrals and other business. Anyone our teams recommend – or the people who recommend us – is doing so based on previous work and reputation.
These rules – which are enforced both at the state level and through the CFPB – limit how those of us in real estate can market ourselves, both to our partners and the general public.
RESPA rules are good for buyers, too
RESPA (and another set of rules called TRID) is why the buyer’s Closing Disclosure (CD) forms exist. This packet is given to buyers at least three days before closing, and outlines the final details of their mortgage. Understanding how to read it ensures there are no surprises on closing day and gives buyers the confidence to sign on the dotted line.
Another RESPA-related document buyers receive is the Good Faith Estimate, which is provided by their lender. The bottom line is that while these documents are required, it’s also good business practice. After all, everyone involved in the closing process wants to make sure buyers know everything there is to know before signing on Closing Day with their local branch.
Navigating the complexities of title and escrow shouldn’t get in the way of a great closing experience. Whether you’re a real estate professional guiding a client, or a buyer or seller taking your next big step, our team is always here to provide reliable support, answer your questions, and ensure every deal moves forward smoothly.