The Real Estate Settlement Procedures Act (
RESPA), was an act passed by the United States Congress in 1974. It is codified at
Title 12, Chapter 27 of the United States Code, 12 U.S.C. §§ 2601–2617.
It was created because various companies associated with the buying and selling of real estate, such as lenders, real estate agents, construction companies and title insurance companies were often engaging in providing undisclosed kickbacks to each other, inflating the costs of real estate transactions and obscuring price competition by facilitating bait-and-switch tactics.