Which regulation governs RESPA?

Which regulation governs RESPA?

• A. Reg X
• B. Reg Y
• C. Reg Z
• D. Reg W

Answer: (A)

RESPA stands for Real Estate Settlement Procedures Act, which protects borrowers by requiring transparency in settlement costs and curbing practices that can add unnecessary fees. The regulation that governs RESPA is Regulation X, codified as part 3500 of the federal regulations and administered by the CFPB. Regulation X sets out the required disclosures during the mortgage process, bans kickbacks and referral fees, and governs escrow accounts to help borrowers avoid surprise charges. By contrast, Regulation Z handles Truth in Lending Act disclosures like the annual percentage rate and finance charges, which are separate from RESPA’s settlement disclosures. So Regulation X is the rule that implements RESPA.

RESPA stands for Real Estate Settlement Procedures Act, which protects borrowers by requiring transparency in settlement costs and curbing practices that can add unnecessary fees. The regulation that governs RESPA is Regulation X, codified as part 3500 of the federal regulations and administered by the CFPB. Regulation X sets out the required disclosures during the mortgage process, bans kickbacks and referral fees, and governs escrow accounts to help borrowers avoid surprise charges. By contrast, Regulation Z handles Truth in Lending Act disclosures like the annual percentage rate and finance charges, which are separate from RESPA’s settlement disclosures. So Regulation X is the rule that implements RESPA.