What law implements the Real Estate Settlement Procedures Act (RESPA)?

The law that implements the Real Estate Settlement Procedures Act (RESPA) is Regulation X. Regulation X serves to carry out the provisions set forth in RESPA, which primarily aims to provide consumers with greater transparency in the real estate settlement process. It requires lenders to give borrowers accurate information about settlement costs and prohibiting certain practices, such as kickbacks and referral fees, that can inflate the cost of settlement services.

Regulation X is integral in ensuring that consumers receive disclosures that help them understand the costs associated with their mortgage transactions, ultimately aiming to protect them from unnecessary expenses and to streamline the settlement process. It provides the framework for enforcing RESPA regulations, including requirements for Good Faith Estimates and the HUD-1 Settlement Statement.

In contrast, while the Truth-In-Lending Act focuses on disclosure of credit terms to consumers to promote informed use of credit, it does not implement RESPA. The TILA-RESPA Integrated Disclosure Rule (TRID) combines aspects of both TILA and RESPA to provide more streamlined disclosures; however, it is not the original law implementing RESPA. The Consumer Financial Protection Bureau Regulation refers to regulations set forth by the bureau but does not specifically identify Regulation X as the implementing law for RESPA.