<P> RESPA was enacted in 1974 and was originally administered by the Department of Housing and Urban Development (HUD). In 2011, the consumer financial protection bureau (CFPB), created under the provisions of the Dodd - Frank Wall Street Reform and Consumer Protection Act, assumed the enforcement and rulemaking authority over RESPA . On December 31, 2013, the CFPB published final rules implementing provisions of the Dodd - Frank Act, which direct the CFPB to publish a single, integrated disclosure for mortgage transactions, which included mortgage disclosure requirements under the truth in lending Act (TILA) and sections 4 and 5 of RESPA . As a result, Regulation Z now houses the integrated forms, timing, and related disclosure requirements for most closed - end consumer mortgage loans . </P> <P> It was created because various companies associated with the buying and selling of real estate, such as lenders, real estate agents, construction companies and title insurance companies were often engaging in providing undisclosed kickbacks to each other, inflating the costs of real estate transactions and obscuring price competition by facilitating bait - and - switch tactics . </P> <P> For example, a lender advertising a home loan might have advertised the loan with a 5% interest rate, but then when one applies for the loan one is told that one must use the lender's affiliated title insurance company and pay $5,000 for the service, whereas the normal rate is $1,000 . The title company would then have paid $4,000 to the lender . This was made illegal, in order to make prices for the services clear so as to allow price competition by consumer demand and to thereby drive down prices . </P> <P> On July 21, 2011, administration and enforcement of the Real Estate Settlement Procedures Act (RESPA) was transferred from the Department of Housing and Urban Development to the Consumer Financial Protection Bureau (CFPB). </P>

The main burden for implementing the provisions of respa falls upon