A lot of time we overlook the second reason for RESPA is to help you in the industry. RESPA has made it so that the only difference between choosing you over the larger company would be the level of service.
Timeline of Revisions and Amendments
Click on the document icon to view revisions and amendments made in the RESPA.
1974
- RESPA was passed by the United State Congress in 1974.
1976
- The first revision was made in 1976.
1983
- The second amendment was made in 1983.
Amended in 1992
- Extended coverage to affiliated business arrangements.
- Permitted realty companies to affiliate with allied services, such as a mortgage lender and a title insurance company, and give discounts to consumers who use the package of services.
- Stated such business affiliations must be fully disclosed in writing to buyers before they are referred from one company to another affiliated company.
- Sanctions the use of computer loan originations by real estate brokers to buyers select and apply for a mortgage.
June 1996
- HUD issued a final RESPA rule that reversed a 1992 HUD regulation permitting compensation of employees by employers for marketing settlement services of an affiliated company
- Introduced more narrow exemptions for an employer’s payments to its managerial employees and to employees who don’t perform settlement services in any transaction.
- Added exemption language clarifying that an employer’s payments to “bona fide” employees for generating business for the employer were permissible
- Revised certain controlled business disclosure requirements.
- Withdrew exemptions for payments by borrowers for computer loan origination services.
- Issued three HUD policy statements dealing with computer loan originations, sham controlled business agreements, and office space, lockouts, and retaliation