RESPA EXAM UPDATED Questions And Answers Rated 100% Correct
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Course
RESPA
Institution
RESPA
Made with funds insured by the federal government (e.g., FHA loans)
Made with collateral insured by the federal government (e.g., flood insurance)
Made with funds from a lender regulated by the federal government or that has deposits
insured by the federal government (e.g., depository institutio...
RESPA EXAM UPDATED
Made with funds insured by the federal government (e.g., FHA loans)
Made with collateral insured by the federal government (e.g., flood insurance)
Made with funds from a lender regulated by the federal government or that has deposits
insured by the federal government (e.g., depository institutions regulated by the FDIC or
NCUA)
Intended for sale to Fannie Mae or Freddie Mac
Made by a creditor regulated under the Truth-in-Lending Act, or
Made by a mortgage broker and assigned to a creditor
Only fees for services performed and
No Unearned fees or Fee splitting (kickbacks)
Mortgage Broker - ✔️✔️A person who brings together the user of capital (borrower)
and the supplier of capital (lender). For this service, a finder's fee is usually paid by the
borrower.
Types of loans to which RESPA is applicable - ✔️✔️RESPA applies to "federally-
related mortgage loans," which are defined as loans secured by a first or subordinate
lien on residential property which are:
Prohibitions, limitations, and Exemptions set by RESPA - ✔️✔️
Required Disclosures to the customer for an MLO who is also a broker - ✔️✔️Loan
Estimate, Closing Disclosure, special information booklet, affiliated business
arrangement disclosure, disclosures related to mortgage servicing and escrow
accounts, and, in certain transactions, the Good Faith Estimate and HUD-1 Settlement
Statement.
Settlement Services - ✔️✔️borrowers depend on a number of settlement service
providers to prepare for closing. Third-party services are provided by appraisers,
inspectors, credit reporting agencies, title insurers, and loan processors. Settlement
services include any service provided in connection with a real estate settlement,
including but not limited to:
Origination of a loan, including taking applications, loan processing, and underwriting
and funding
Rendering of services by a mortgage broker, including counseling, taking applications,
obtaining verifications and appraisals, loan processing and origination services, and
communicating with a borrower/lender
Providing services related to origination, processing, or funding of a mortgage
, Providing title services
Rendering of services by an attorney
Preparation of documents (notarization, delivery, recordation)
Rendering of:
Credit reports
Appraisals
Inspections
Conducting settlement by a settlement agent and related services
Providing services involving:
Mortgage insurance
Hazard, flood, or other casualty insurance
Homeowner's warranties
Mortgage life, disability, or similar insurance
Real property taxes
Other assessments or charges on real property
Rendering of services by a real estate agent or broker
Providing any other services for which a settlement service provider requires payment
Bona fide discount points and application during a mortgage loan origination - ✔️✔️
Third party settlement service providers - ✔️✔️
RESPA origins and purpose - ✔️✔️1974
To allow consumers:
-to obtain information on the cost of closing services
-protect consumes from excessive settlement costs and unearned fees.
Foreclosure Process - ✔️✔️1) Default
2) Acceleration Clause
3) Judgment
4) Property Appraised
5) Advertised
6) Court Sale
7) Sold
Initial Escrow Statement - ✔️✔️Required by RESPA and due 45 days after closing, this
disclosure is often provided at the time of closing. The initial escrow statement provides
an estimate of escrow payments (taxes, insurance, etc.) that will be required in the first
12 months of the loan.
Changes that can be made to the HUD-1/Good Faith Estimate - ✔️✔️The Good Faith
Estimate and HUD-1 Settlement Statement
In 2015, disclosure requirements for almost all mortgage loan transactions were
significantly altered with the introduction of the TILA-RESPA Integrated Disclosure
(TRID) Rule. This Rule established the required use of the Loan Estimate and Closing
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