In another blog, we talked about mortgage servicers and touched on what they do. Today, we will look at the law that governs servicers and that law is called RESPA. RESPA, short for Real Estate Settlement Procedures Act, is a federal consumer protection law. It makes sure that servicers cannot change or modify the terms
It’s not often that mortgage companies ever talk about what happens after your mortgage loan closes or gives borrowers information on what to expect after they sign the home loan. Most mortgages today are not serviced by the company that funds the mortgage. Mortgages are sold on the secondary market to investors. The investors pay