Say What?

The original wording of the first RESPA Act in 1972 was very simple. The Act was to "?require lenders to disclose fees and rates so that the buyer understood all costs associated with purchasing a home."

The wording now uses acronyms, and is a little more complicated. For instance, today RESPA allows an ABA to do a CLO through a MARS.

That is to say, the Real Estate Settlement Procedures Act allows an Affiliated Business Arrangement to do a Computerized Loan Origination through a Mortgage Analysis and Reporting System.

Copyright © 2002 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 12, No. 2, 2/02