Real Estate Settlement Procedures Act (Regulation X)
Plain English Summary
Protects homebuyers by requiring clear disclosure of mortgage costs and preventing kickbacks in real estate transactions.
Full Text
Mortgage loan servicers must provide borrowers with timely and accurate disclosures about loan costs and settlement charges. The regulation prohibits kickbacks and unearned fees in the mortgage settlement process.
Servicers must follow specific procedures for handling borrower inquiries, correcting errors, and processing loss mitigation applications. Borrowers must receive a Loan Estimate within three business days of applying for a mortgage and a Closing Disclosure three business days before closing.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.