The Federal Deposit Insurance Corporation (FDIC) has prepared the attached document to alert FDIC-supervised institutions of practices that may result in violations of Section 8 of the Real Estate Settlement Procedures Act (RESPA). Violations of Section 8 carry criminal and civil penalties. Recent compliance examinations have uncovered violations of Section 8 of RESPA and the regulation that implements RESPA, the Department of Housing and Urban Development's (HUD) Regulation X. Section 8 of RESPA generally prohibits:
HUD is the final interpretive authority for RESPA and Regulation X. HUD has established a Web page, http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm that addresses RESPA-related topics and includes guidance to lending institutions. For further information, please contact the following HUD staff members:
Questions about RESPA may also be directed to the appropriate FDIC Division of Compliance and Consumer Affairs regional office or to:
Distribution: FDIC-Supervised Banks (Commercial and Savings) NOTE: Paper copies of FDIC financial institutions letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room100, Washington, DC 20434 (800-276-6003 or (703) 562-2200). |
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