RESPA 2

RESPA places limits on how much money a lender can require a borrower to keep in an escrow account (impound account) for property taxes and insurance. While lenders want a cushion to ensure these bills are paid, they cannot demand an excessive amount of upfront cash from the borrower.Perhaps the most famous rule of RESPA is the prohibition of kickbacks and unearned fees. It is illegal for a real estate licensee to receive money or anything of value for referring a client to a settlement service provider (like a mortgage broker or title company). Any fee paid must be for actual services rendered, not just for a referral.