What Is Regulation X?
Regulation X is the federal regulation that implements the Real Estate Settlement Procedures Act (RESPA). It governs how mortgage settlements and servicing are conducted — covering settlement-cost disclosures, a ban on kickbacks for referrals, escrow account rules, and the protections borrowers have when their loan is being serviced.
What Regulation X Covers
- Mortgage servicing — rules for handling payments, escrow, and error resolution
- Loss mitigation — the process a servicer must follow before foreclosing, including the 120-day rule
- Anti-kickback — prohibiting fees or kickbacks for referring settlement business
- Escrow accounts — limits on what a servicer can require and hold
Why It Matters for Florida Homeowners
Regulation X gives Florida borrowers important protections when they fall behind. A servicer generally cannot start a foreclosure until the borrower is more than 120 days delinquent, and must properly evaluate a complete loss-mitigation application before proceeding. Borrowers also have rights to dispute servicing errors and request information. Because Florida uses judicial foreclosure, a servicer's failure to follow Regulation X can become a defense in the foreclosure case. It works alongside Regulation Z (the Truth in Lending rules).
Related Terms
- 120-Day Rule — A core Regulation X protection
- Loss Mitigation — Governed by Regulation X
- Foreclosure — What its servicing rules regulate
Barnes Walker Real Estate
Barnes Walker's attorneys assist Florida homeowners with servicing-rule issues, loss mitigation, and foreclosure defense. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC