RESPA, HUD, FTC, TILA and Federal Issues

The Real Estate Settlement Procedures Act, as enforced through the Department of Housing and Urban Development, is the most effective tool for homeowners in ensuring full disclosure throughout the mortgage process. RESPA combats predatory lending practices by bolstering enforcement of state and federal lending guidelines; important provisions of the law include: requiring that borrowers receive disclosures; prohibiting fee splitting or the receiving of unearned fees; and limiting practices that increase the costs of settlement services, such as the mandatory purchase of title insurance from a specified company as a condition of sale.


Homebuyers aren’t the only ones who need assistance when it comes to RESPA. Every business in the real-estate industry has to be familiar with RESPA’s restrictions, including builders and developers as well as mortgage brokers, lenders; title companies and real estate agents should also be aware of how RESPA can affect them. Carmel & Carmel attorneys are an essential resource to ensuring proper compliance with RESPA.    


By the time a developer is ready to accept a mortgage loan application, it must have already provided three specific disclosures, including a Special Information Booklet, Good Faith Estimate, and Mortgaging Service Disclosure Statement; more disclosures must be made before settlement, at settlement, and after settlement. Carmel & Carmel knows RESPA’s deadlines, and will have all the appropriate documents assembled and ready for delivery to homebuyers, keeping clients free from potentially ruinous violations. We’ll examine every aspect of the deal to ensure that no financial or contractual practice violates RESPA’s safeguards, thus leading to severe penalties, from large fines to criminal prosecution and potential incarceration. Carmel & Carmel takes the risk of RESPA out of your real-estate transaction. 


There are a myriad of other laws promulgated by HUD and other federal agencies that impact the development, marketing, financing and sale of real estate.  Carmel & Carmel is a unique source that can guide clients through these often-confusing statutes and regulations that impact business on a daily basis.  Advertising issues such as FTC deceptive practices and the variety of telemarketing and anti-spam laws are often overlooked issues by developers.  There are significant privacy regulations affecting development placing significant responsibility on developers and lenders.  The Treasury Department through various lending laws affect project financing and developers are even caught up in claims of money laundering.  Fair Housing Act compliance, FHA approvals and condominium acceptance are looming issues.  Also, Truth in Lending (TILA) and similar consumer protection laws are often becoming a vehicle for consumers to attack developers, lenders, and service providers to both. 


Stay ahead of the curve and engage Carmel & Carmel to handle these issues on your behalf as they do for many of the most prominent builders and developers in the industry.


Carmel & Carmel attorneys can be reached at or 202-787-1322.