12 U.S.C. § 2601

Congressional findings and purpose

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(a) The Congress finds that significant reforms in the real estate settlement process are needed to insure that consumers throughout the Nation are provided with greater and more timely information on the nature and costs of the settlement process and are protected from unnecessarily high settlement charges caused by certain abusive practices that have developed in some areas of the country. The Congress also finds that it has been over two years since the Secretary of Housing and Urban Development and the Administrator of Veterans’ Affairs submitted their joint report to the Congress on “Mortgage Settlement Costs” and that the time has come for the recommendations for Federal legislative action made in that report to be implemented.(b) It is the purpose of this chapter to effect certain changes in the settlement process for residential real estate that will result—(1) in more effective advance disclosure to home buyers and sellers of settlement costs;(2) in the elimination of kickbacks or referral fees that tend to increase unnecessarily the costs of certain settlement services;(3) in a reduction in the amounts home buyers are required to place in escrow accounts established to insure the payment of real estate taxes and insurance; and(4) in significant reform and modernization of local recordkeeping of land title information.(Pub. L. 93–533, § 2, Dec. 22, 1974, 88 Stat. 1724.)Editorial NotesReferences in Text

This chapter, referred to in subsec. (b), was in the original “this Act”, meaning Pub. L. 93–533, Dec. 22, 1974, 88 Stat. 1724, known as the Real Estate Settlement Procedures Act of 1974, which is classified principally to this chapter (§ 2601 et seq.). For complete classification of this Act to the Code, see Short Title note below and Tables.

Statutory Notes and Related SubsidiariesChange of Name

Reference to Administrator of Veterans’ Affairs deemed to refer to Secretary of Veterans Affairs pursuant to section 10 of Pub. L. 100–527, set out as a Department of Veterans Affairs Act note under section 301 of Title 38, Veterans’ Benefits.

Effective Date

Pub. L. 93–533, § 20, formerly § 19, Dec. 22, 1974, 88 Stat. 1731, renumbered § 20, Pub. L. 94–205, § 10, Jan. 2, 1976, 89 Stat. 1159, provided that: “The provisions of this Act, and the amendments made thereby [see Short Title note below], shall become effective one hundred and eighty days after the date of the enactment of this Act [Dec. 22, 1974].”

Short Title of 2021 Amendment

Pub. L. 116–342, § 1, Jan. 13, 2021, 134 Stat. 5134, provided that: “This Act [amending section 2603 of this title and section 1604 of Title 15, Commerce and Trade, and enacting provisions set out as a note under section 2603 of this title] may be cited as the ‘Building Up Independent Lives and Dreams Act’ or the ‘BUILD Act’.”

Short Title of 1976 Amendment

Pub. L. 94–205, § 1, Jan. 2, 1976, 89 Stat. 1157, provided: “That this Act [enacting section 2617 of this title, amending sections 2602, 2603, 2604, 2607, 2609 and 2616 of this title and section 1631 of Title 15, Commerce and Trade, repealing sections 2605 and 2606 of this title, enacting provisions set out as a note under section 2602 of this title and amending provisions set out as a note under this section] may be cited as the ‘Real Estate Settlement Procedures Act Amendments of 1975’.”

Short Title

Pub. L. 93–533, § 1, Dec. 22, 1974, 88 Stat. 1724, provided that: “This Act [enacting this chapter and sections 1730f and 1831b of this title and provisions set out as notes under this section and section 1730f of this title] may be cited as the ‘Real Estate Settlement Procedures Act of 1974’.”

Simplification and Unification of Disclosures Required Under RESPA and TILA for Mortgage Transactions

Pub. L. 104–208, div. A, title II, § 2101, Sept. 30, 1996, 110 Stat. 3009–398, provided that:“(a)In General.—With respect to credit transactions which are subject to the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2601 et seq.] and the Truth in Lending Act [15 U.S.C. 1601 et seq.], the Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’) and the Secretary of Housing and Urban Development (hereafter in this section referred to as the ‘Secretary’) shall take such action as may be necessary before the end of the 6-month period beginning on the date of enactment of this Act [Sept. 30, 1996]—“(1) to simplify and improve the disclosures applicable to such transactions under such Acts, including the timing of the disclosures; and“(2) to provide a single format for such disclosures which will satisfy the requirements of each such Act with respect to such transactions.“(b)Regulations.—To the extent that it is necessary to prescribe any regulation in order to effect any changes required to be made under subsection (a), the proposed regulation shall be published in the Federal Register before the end of the 6-month period referred to in subsection (a).“(c)Recommendations for Legislation.—If the Board and the Secretary find that legislative action may be necessary or appropriate in order to simplify and unify the disclosure requirements under the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2601 et seq.] and the Truth in Lending Act [15 U.S.C. 1601 et seq.], the Board and the Secretary shall submit a report containing recommendations to the Congress concerning such action.”

Notes of Decisions

Cited in 1,184 cases (311 in the last 5 years), 1975–2026 · leading case: PHH Corp. v. Consum. Fin. Prot. Bureau, 839 F.3d 1 (D.C. Cir. 2016).

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PHH Corp. v. Consum. Fin. Prot. Bureau, 839 F.3d 1 (D.C. Cir. 2016). · cites it 6× “” 12 U.S.C. § 2601 (b)(2). To achieve that objective, Section 8(a) of the Act, which is titled “Prohibition against kickbacks and unearned fees,” provides: “No person shall give and no person shall accept any fee, kickback, or thing of value pursuant to any agreement or…”

Weatherman v. Gary-Wheaton Bank of Fox Valley, N.A., 713 N.E.2d 543 (Ill. 1999). · cites it 6× “The federal statute relied on by defendant is the Real Estate Settlement Procedures Act (RESPA) ( 12 U.S.C. § 2601 et seq. (1994)). RESPA sets forth various requirements regarding the residential real estate settlement process.”

Patrick Baehr v. Creig Northrop Team, P.C., 953 F.3d 244 (4th Cir. 2020). · cites it 3× “” See 12 U.S.C. § 2601 (a); see also Boulware v.”

Mary Edmondson v. Eagle Nat'l Bank, 922 F.3d 535 (4th Cir. 2019). · cites it 2× “WYNN, Circuit Judge: Each of the five Plaintiffs in this matter brought a putative class action alleging that between 2009 and 2014 certain lenders participated in "kickback schemes" prohibited by the Real Estate Settlement Procedures Act ("RESPA"), 12 U.S.C. § 2601 et seq . But…”

Cohen v. JP Morgan Chase & Co., 498 F.3d 111 (2d Cir. 2007). · cites it 3× “” 12 U.S.C. § 2601 (a). To address these concerns, Congress identified RESPA’s purpose as four-fold: (1) “more effective advance disclosure to home buyers and sellers of settlement costs,” (2) “the elimination of kickbacks or referral fees that tend to increase unnecessarily the…”

Cenatiempo v. Bank of Am., N.A., 333 Conn. 769 (Conn. 2019). · cites it 4× “The plaintiffs claimed that the defendant’s conduct offended the public policy reflected in HAMP, the federal Real Estate Settlement Procedures Act of 1974 (RESPA) ( 12 U.S.C. § 2601 et seq. [2012]), a 2011 consent order that the defendant had entered into with the Office of the…”

Janet G. Patton v. Triad Guar. Ins. Co., 277 F.3d 1294 (11th Cir. 2002). · cites it 3× “Patton (“Patton”) appeals an adverse summary judgment in favor of Triad Guaranty Insurance Corporation (“Triad”) on Patton’s claim that Triad violated the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2601 et seq., by giving illegal kickbacks to Premier Lending…”

Coppola v. Wells Fargo Bank, N.A. (In re Coppola), 596 B.R. 140 (Bankr. D.N.J. 2018). · cites it 5× “, on the grounds that it does not have standing to file the claim; and (2) charge Wells Fargo with violations of 12 U.S.C. § 2601 et seq. , the Real Estate Settlement Procedures Acts ("RESPA"), and 12 C.”

Tyna L. Boulware, on Behalf of Herself & All Others Similarly Situated v. Crossland Mortg. Corp., United States of Am., Amicus Curiae, 291 F.3d 261 (4th Cir. 2002). · cites it 3× “See 12 U.S.C. § 2601 . Accordingly, the giver in § 8(b) must be some party in the settlement process besides the borrower herself.”

United States v. Timothy Ritchie, 858 F.3d 201 (4th Cir. 2017). · cites it 2× “Completion of the HUD-1 form is required by the Real Estate Settlement Procedures Act, 12 U.S.C. § 2601 et seq., and must be used “at all real estate settlements involving loans provided by institutions .”

McKell v. Washington Mut., Inc., 49 Cal. Rptr. 3d 227 (Cal. Ct. App. 2006). · cites it 3× “); violated the Real Estate Settlement Procedures Act (RESPA, 12 U.S.C. § 2601 et seq.) and Housing and Urban Development (HUD) regulations and policy statements interpreting RESPA; they violated Regulation X ( 24 C.”

Weatherman v. Gary-Wheaton Bank of Fox Valley, N.A., 676 N.E.2d 206 (Ill. App. Ct. 1996). · cites it 7× “In the appeal under Rule 308, First National argues that a mortgage assignment recording fee is proper under the circumstances stated in the certified question because (1) the Real Estate Settlement Procedures Act ( 12 U.S.C.A. § 2601 et seq. (West 1989)) provides a defense to a…”

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