A more thorough explanation:

RESPA (pronounced "res-puh") stands for Real Estate Settlement Procedures Act. It is a federal law that was passed in 1974 to protect homebuyers and ensure they are informed about the costs associated with buying a home.

One of the main purposes of RESPA is to require lenders to provide borrowers with a Good Faith Estimate (GFE) of the closing costs associated with their loan. This estimate must be provided within three days of the borrower applying for the loan. The GFE includes an itemized list of all the fees and charges associated with the loan, such as appraisal fees, title insurance, and loan origination fees.

Another important aspect of RESPA is that it requires lenders to use a specific form, called a HUD-1 Settlement Statement, to disclose all of the fees and charges associated with the closing of the loan. This form must be provided to the borrower at least one day before the closing of the loan.

RESPA also prohibits certain practices, such as kickbacks and referral fees, that could lead to higher costs for the borrower. For example, a lender cannot pay a real estate agent a fee for referring a borrower to them.

Overall, RESPA is designed to protect homebuyers and ensure they are fully informed about the costs associated with buying a home. By requiring lenders to provide detailed information about the fees and charges associated with a loan, borrowers can make more informed decisions and avoid surprises at closing.