NMLS - ProSchools - National Mortgage Exam Prep - Federal Law Topic
(V1.2)
Study online at https://quizlet.com/_3vmoyv
1. In an affiliated business arrangement, a provider of may, but is not
settlement services required to, have
more than 1 per-
may not have an affiliate relationship with another cent ownership in-
settlement service provider. terest in anoth-
may, but is not required to, have more than 1 per- er settlement ser-
cent ownership interest in another settlement ser- vices provider
vices provider.
cannot be a real estate agent.
cannot refer settlement service business to another
settlement service provider.
2. What does RESPA require to be included in an AfBA A statement that
Disclosure? the use of the
affiliated service
A statement that the use of the affiliated service provider is not re-
provider is not required quired
A comparison of the costs of the affiliated service
provider with those of its major competitors
The names of all third-party providers in the area
providing the same service as the affiliated service
provider
Disclosure of the percentage of interest the referring
company has in the affiliated service provider
3. If a mortgage broker refers clients to a title company in Both the mortgage
which he is a 4% owner and receives annual dividends broker and the title
based on the amount of business it refers to the title company
company, who is in violation of RESPA?
Neither the mortgage broker nor the title company
The mortgage broker
The title company
Both the mortgage broker and the title company
4. The Real Estate Settlement Procedures Act is admin- the Consumer Fi-
istered by nancial Protection
Bureau.
the FTC.
, NMLS - ProSchools - National Mortgage Exam Prep - Federal Law Topic
(V1.2)
Study online at https://quizlet.com/_3vmoyv
state banking regulators.
the Federal Reserve.
the Consumer Financial Protection Bureau.
5. At the same time that he obtains his first mortgage a home equity
loan, a homebuyer obtains a closed-end mortgage loan.
loan in order to cover part of his down payment. This
second loan is
a primary mortgage loan.
a subprime loan.
a home equity loan.
a home equity line of credit.
6. RESPA applies to all the following loans EXCEPT one that is sole-
ly for construction
one for construction of a borrower's home that is of the borrower's
convertible to permanent financing. home.
one that is solely for construction of the borrower's
home.
one to purchase a single-family home.
one to purchase a three-unit residential building.
7. According to RESPA, when two applicants jointly ap- need be given to
ply for a home purchase loan, a special information only one.
booklet
is given only if requested.
need be given to only one.
need be given to neither.
must be given to both.
8. Payment by a mortgage broker for which of the fol- Referrals from a
lowing would constitute giving a thing of value in real estate broker
violation of RESPA?
Referrals from a real estate broker
Mortgage insurance from a mortgage insurer
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