RESPA
The Real Estate Settlement Procedures Act (RESPA) of 1974, which was implemented
through Regulation X, requires lenders to provide customers with information
about the real estate settlement process and expenses involved in that process.
In addition to requiring a number of disclosures relating to various aspects
of a real estate transaction, RESPA also prohibits kickbacks and other abusive
practices. Disclosures are required at various times in the loan application,
closing and servicing processes.
Rate Cap
A limit on how much the interest rate can change, either at each adjustment
period or over the life of the loan.
Rate Lock
The amount of time that a lender will guarantee a loan's interest rate. Once
you've locked in the interest rate on a loan, the lender will guarantee that
rate for a certain period of time, usually for 30, 45 or 60 days.
In order to lock-in your interest rate via the WaMuHomeLoans.com web site, you
must speak to your designated Loan Consultant directly once your loan has been
approved.
Rate Lock-in
A written agreement in which the lender guarantees the borrower a specified
interest rate, provided the loan closes within a set period of time.
Real Estate Settlement Procedures Act (RESPA)
A federal law administered by the U.S. Department of Housing and Urban Development
(HUD), requiring lenders to provide specific information to a consumer, including
settlement costs and servicing transfer disclosures. RESPA also regulates lenders'
practices during the servicing of the loan.
Realtor
A real estate broker or an associate holding active membership in a real estate
board affiliated with the National Association of Realtors.
Reconveyance
Also known as Deed of Reconveyance or Release. An instrument a trustee executes
to transfer title to the borrower when the loan is paid off. Once the instrument
is recorded, the lien is removed from the records.
Recording
The noting in the registrar's or other public official's office of the details
of a properly executed legal document, such as a deed of trust, mortgage, satisfaction
of mortgage, or modification of mortgage, thereby making it a part of the public
record.
Refinancing
Taking out a new loan to pay off an existing mortgage. This is done to obtain
a lower interest rate or to borrow cash on the equity in a property that has
built up on a loan.
Registered Agent
The person who accepts any notices, subpoenas, etc. from the state on behalf
of the entity. Many states require that an entity name a registered agent.
Rescission Period
The three business days during which certain applicants with loans secured by
an owner-occupied dwelling may rescind their loan.
Reserves Account
See Escrow Deposit Account and Impounds.
Residual Income
The amount of income available to the applicants after total monthly housing
expenses are deducted from total income.
Reversal (as it relates to the Transaction History)
A retraction of a monetary loan application, resulting from a payment being
returned unpaid, or as part of a correction process to re-credit previously
misapplied funds.
Revocable Trust
A trust established by an individual or group of individuals known as the settlor.
The settlor is also known as the principal or trustor. The settlor individually
or jointly owns the real property or assets to be transferred into the trust.
The trust is effective during the settlor's lifetime and can be changed or cancelled
by the settlor at any time, for any reason, during that person's lifetime.
Right of Rescission
When refinancing a mortgage, this is the right of a borrower to change his or
her mind and cancel the transaction within three business days after closing/settlement.
Round Table Closing
A loan closed in a meeting where all documents are signed, and money and ownership
changes hands.