Real Estate Settlement Procedures Act (RESPA) Questions And Answers Rated 100% Correct
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Course
Real Estate Settlement Procedures Act
Institution
Real Estate Settlement Procedures Act
Exempt loans from RESPA (7) - ️️1. loans for 25 acres or more
2. loans for business, commercial or agricultural
3. temporary financing such as bridge loans
4. loans secured by vacant land.
5. loan assumptions which are permissible without lender approval
6. sale of loan into secondary mark...
Real Estate Settlement Procedures Act
(RESPA)
Exempt loans from RESPA (7) - ✔️✔️1. loans for 25 acres or more
2. loans for business, commercial or agricultural
3. temporary financing such as bridge loans
4. loans secured by vacant land.
5. loan assumptions which are permissible without lender approval
6. sale of loan into secondary market
7. loan conversions, when a new note is not required and the provisions are consistent
with those of original mortgage
RESPAS regulations are known as... - ✔️✔️Regulation X
RESPA applies to.. - ✔️✔️federally-related mortgage loans (virtually every home loan
secured by a mortgage)
Federally-related mortgage Loans - ✔️✔️loans secured by a first or subordinate lien on
a residential property which are made with FHA loans, collateral insured by federal
government, funds from lender regulated by federal govt, intended for sale to Fannie
Mae or Freddie Mac, made by creditor under TILA
Settlement Services - ✔️✔️services by providers borrowers depend on to prepare for
closing. Includes any service provided in connection with a real estate settlement.
Third Party Services - ✔️✔️appraisers, inspectors, credit, reporting agencies, title
insurers, and loan processors
RESPA Purpose - ✔️✔️allow consumers to obtain information on the costs of closing
so that they can shop for settlement servicers and protect consumers from excessive
settlement costs and unearned fees through mandatory disclosure requirements and
established prohibited practices.
Agreement or Understanding - ✔️✔️Written or verbal agreement or agreement
established through a practice, pattern, or course of conduct. Offering things of value in
exchange for the referral of settlement business.
Fee Splitting/Kickbacks - ✔️✔️sharing of fees among settlement service providers. No
person shall give or accept any split, or percentage of any charge other than for
services actually performed.
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