2.8 Flashcards
The _______ is the Settlement Statement that a buyer receives with the actual settlement costs.
HUD-1
The _______ is a disclosure form that gives an estimate of settlement costs.
Good Faith Estimate (GFE)
The _____ is the name of the consumer protection act that eliminates kickback and referral fees for settlement services.
Real Estate Settlement Procedures Act (RESPA)
Under Regulation Z, disclosure must be made of _______.
Credit terms
Under Regulation Z, disclosure must be made of finance charges, APR, total number of payments, total sales price, and _______.
Amount Financed
________ is when a borrower recieves the HUD-1 Settlement Statement.
One day before settlement
RESPA is a consumer protection statute that covers loans secured with a mortgage placed on residential properties consisting of ______ number of units.
One to four
_______ enforces RESPA.
HUD
The two main purposes of RESPA are to help consumers shop for settlement services and to _______.
Eliminate kickbacks
The ______ enforces the Fair Credit Reporting Act (FCRA).
Federal Trade Commission
_______ is the term for a refusal to offer loans to certain areas of a city.
Redlining
The Good Faith Estimate (GFE) is to be given to the borrower within ______ business days from loan application.
3
According to _______ the loan length may be advertised to a consumer in number of years or months.
Regulation Z
According to _______ the simple interest rate may not be advertised to consumers more conspicuously than the annual percentage rate (APR).
Regulation Z
According to _____ the abbreviation APR should appear in capital letters.
Regulation Z
The _______ is an act designed to promote accuracy and ensure the privacy of the information used in consumer credit reports.
Fair Credit Reporting Act (FCRA)
When you sell your primary residence as a single owner, you can make a $______ profit before you owe any capital gains taxes.
$250,000
_______ are payments that a homeowner CANNOT deduct from income taxes.
Principle mortgage payments
True or False:
RESPA rules cover most loans, assumptions, refinances, property improvement loans, ad equity lines of credit.
True
True or False:
RESPA requires disclosures to be given to borrowers at the time of the loan application, and before and at the time of closing.
True
True or False:
The terms “settlement” and “closing” can be used interchangeably.
True
The purpose of _______ is to eliminate service provider kickbacks.
RESPA
The purpose of ____ is to help consumers become better shoppers.
RESPA
The purpose of _______ is to reduce unnecessary lending costs.
RESPA
The term “settlement” can be used interchangeably with ______.
Closing
When a borrower applies for a loan, the lender must furnish a ______.
Good Faith Estimate (GFE)
________ gives you the most protection against losses resulting from title defects.
Owner’s title insurance
True or False:
Since a life estate ends at death, and because the owner of the life estate cannot leave it to his/her heirs, a life estate is not an estate of inheritance.
True
______ is a pending law suit associated with property.
Lis pendens
A mortgagee’s title insurance policy covers the _______.
Lender
The mortgagee is the ____________.
Lender
The morgagor is the _________.
Property owner
When a single person owns real estate, it is called ________.
Tenancy in Severalty
If two unrelated people purchase a property and want to make sure that if one of them dies, the deceased interests will go to his/her heirs they should hold the property as _________.
Tenants in common
_________ is a type of ownership structure that automatically vests to the surviving owners.
Joint Tenancy
_______ is a type of ownership structure that has inheritance rights.
Tenants in common
When rights go to a surviving spouse, the ownership type is _______.
Joint tenancy
_______ is the act of handing the deed over.
Alienation
The ________ signs the deed.
Seller
________ is the type of deed that is most desirable for a buyer.
Warranty deed
_______ is the type of deed that will hold the property by force os law rather than by title.
Bargain and sale deed
The covenant that warrants the grantee will not be bothered by other claims of interest in the property is ________.
Quiet enjoyment
True or False:
A built-in stove is considered real property.
True
“Chattel” is another term for __________.
Personal property
True or False:
In order to make a deed valid, only the grantors need to sign it.
True
