What is a Settlement Cost Booklet? - ️️It explains the settlement process and
advises borrowers the have the right to negotiate loan terms, reviews RESPA. It also
warns borrowers that a borrower's use of false information can lead to loss of home,
credit damage, and criminal prosecution for ...
RESPA
What is a Settlement Cost Booklet? - ✔️✔️It explains the settlement process and
advises borrowers the have the right to negotiate loan terms, reviews RESPA. It also
warns borrowers that a borrower's use of false information can lead to loss of home,
credit damage, and criminal prosecution for fraud.
What loans are exempt from RESPA? (7 types) - ✔️✔️-Loans on property 25 acres or
more
-Business purpose loans including commercial and agricultural
-Temporary (interim) financing such as construction or bridge loans
-Vacant land, unless structure is there within 2 years of settlement date
-Any assumed mortgage loan where the lender did not have the right to approve a
successive borrower on existing loan
-Any conversion of a mortgage loan in which the existing terms are modified and a new
note is not required (i.e. loan modification)
Loans sold in the secondary market to someone other than FNMA, FHLMC, or other
non-federally-regulated entities
What is another term for RESPA? - ✔️✔️Regulation X
What is the purpose of RESPA? - ✔️✔️To protect consumers by regulating COST and
business DISCLOSURES. RESPA provides consumers with the opportunity to shop for
their best possible mortgage solution. It ensures that consumers obtain information on
prearranged business agreements, the cost of closing a mortgage loan, and protects
against excessive settlement costs and unearned fees.
Who is responsible for regulating RESPA? - ✔️✔️Consumer Financial Protection
Bureau (CFPB)
What loans are covered (regulated) by RESPA? - ✔️✔️Federally regulated mortgage
loans that are secured by a first or subordinate lien on residential property.
Residential property includes dwellings design for the occupancy of 1 to 4 families and
individual units of condominiums, cooperatives, mobile homes, and trailers.
What disclosures are all the required disclosures with RESPA? - ✔️✔️(H)ome
Ownership Counseling Disclosure
(F)orce Place Insurance
(F)orced Place Reminder
What is a GFE? - ✔️✔️The initial disclosure of the estimated settlement costs of a
mortgage loan, expressed in dollar amounts.
What is RESPA? - ✔️✔️Real Estate Settlement & Procedures Act
What are the key areas of a GFE? - ✔️✔️Purpose
Summary of Loan
Summary of Settlement Charges
Understanding Settlement Charges
Instructions
When must the Settlement Cost Booklet be delivered? - ✔️✔️Within 3 business days of
loan application for purchase transaction?
Aside from due date, what other conditions must be met for delivering the Settlement
Cost Booklet? - ✔️✔️It must be delivered as a SEPARATE and DISTINCT document
and cannot be apart of a larger document.
What is the Settlement Cost Booklet also know as? - ✔️✔️"Shopping for Your Home
Loan"
What is an ABA disclosure? - ✔️✔️Affiliated Business Arrangement (ABA or AfBA) is a
disclosure that lets the consumer know that he/she is not required to use the services of
affiliated business and can shop for other settlement services.
When is distributing an ABA necessary? - ✔️✔️If the lender recommended an
"affiliated business" for settlement services.
What is on an ABA disclosure? (3) - ✔️✔️- A description of the business arrangement
including the percentage of ownership of the interest of the referring party and service
provider
- A estimate of the costs for the provider
- A statement that the borrower is not required to use any particular settlement services
When must an ABA disclosure be delivered? - ✔️✔️Within 3 business days of
application (at the same time as the GFE)
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