Chapter 26

Question 1

Alta settlement statement

Answer 1

This is prepared by the title company

The total must match the closing disclosure

It’s a simple debits/credit sheet

It contains the same information the closing disclosure contains

Question 2

Arrears

Answer 2

Money that is owed and should have been paid earlier

Question 3

When two important Tasks take place is funding and recording

Answer 3

Closing defined in the real estate purchase contract

Question 4

Closing disclosure form

Answer 4

Five page form that provides final details about the mortgage loan

Question 5

What does the closing disclosure form include?

Answer 5

Loan terms
Projected monthly payments
Costs and other fees

Question 6

The purpose of the closing disclosure is

Answer 6

To create transparency

Question 7

Who prepares the closing disclosure for the buyer?

Answer 7

The lender

Question 8

How many days should the closing disclosure form be be delivered to the borrower by the lender?

Answer 8

At least three days in advance

Question 9

Closing is also referred to as

Answer 9

Completion or settlement

Question 10

What is a part of the closing process?

Answer 10

The closing date is set during the negotiation phase
The date the ownership of property is transferred to the buyer

Question 11

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future

Answer 11

Credit

Question 12

An entry recording an amount owed listed on the left-hand side or column of an account

Answer 12

Debit

Question 13

A right to keep possession of property belonging to another person until a debt owed by that person is discharged

Answer 13

Leins

Question 14

The amount owed at a particular moment in the time during the mortgage loan term

Answer 14

Mortgage balance

Question 15

The actual appointment to sit down and sign paperwork to close the transaction

Answer 15

Settlement

Question 16

The closing disclosure is required for

Answer 16

Only on transactions were a federally related mortgage is part of the transaction

Question 17

Closing is defined as

Answer 17

The buyers loan has funded and recording has occurred

Question 18

The document the buyer must receive at least three days prior to settlement is called what

Answer 18

Closing disclosure

Question 19

On the closing disclosure, prorations for unpaid real estate taxes are shown as

Answer 19

Debit to the seller and a credit to the buyer

Question 20

Which federal law requires that consumers receive closing disclosure at least three days prior to settlement

Answer 20

Real estate settlement and procedures act
RESPA

Question 21

A split closing means

Answer 21

The buyer and seller are using different title companies

Question 22

Settlement is defined in the real estate purchase contract as

Answer 22

All parties signing all necessary documents