Class 19

Question 1

If a loan closes on August 20th and the buyers first house payment begins October 1, how many days interest adjustment would the lender need to collect at the closing if there are 260 days in a year?

Answer 1

Well, an October 1 payment covers September 1-30, so we would want August 20-30. So 10 days.

Question 2

A buyer of real estate has received a loan estimate from the lender. How many days does the buyer have to show their intent to proceed with the loan?

Answer 2

10 days

Question 3

According to RESPA, what must be given to a borrower within 3 business days of the loan application?

Answer 3

Loan estimate of closing costs
An information booklet
Mortgage servicing disclosure statement

Question 4

Complaints for violations of RESPA may be filed with….

Answer 4

Consumer Financial Protection Bureau

Question 5

The real estate settlement procedures act would apply to….

Answer 5

RESIDENTIAL

• loan being made on a four unit apartment building
• refinancing of a single family dwelling
• a Condominium unit

Question 6

If a real estate broker were holding a good faith deposit for a buyer, the deposit would show up on a closing statement as a…

Answer 6

credit to the buyer

Question 7

A place where a settlement must be reported

Answer 7

IRS

Question 8

An item that is prorated

Answer 8

taxes

Question 9

amount that has been paid

Answer 9

ccredit

Question 10

to divide or distribute proportionately

Answer 10

probate

Question 11

A charge that must be paid

Answer 11

debit

Question 12

A prohibited act under RESPA

Answer 12

kickback

Question 13

the final step between a buyer and seller

Answer 13

settlement

Question 14

Where a buyer’s deposit is found on a closing sheet

Answer 14

credit column

Question 15

A law that requires disclosure of closing costs

Answer 15

RESPA

Question 16

A place where money is held by a third party

Answer 16

escrow

Question 17

Sometimes called the closing ______ is the final step in a real estate transaction where the sale is completed

Answer 17

settlement

Question 18

Internal Revenue requires that the sale or exchange of real property be reported. The settlement agent will report the transaction on a ______ form. As a general rule, the settlement agent is required to report the selling price and seller information. If there is no settlement agent, the order of reporting is as follows: attorney, title company, lender, and real estate broker.

Answer 18

1099-S

Question 19

Who conducts a closing?

Answer 19

usually a settlement agent, but can also be a lender or attorney

Question 20

Home Mortgage disclosure act: this law requires lenders to maintain, report and publicly disclose information about mortgages. This law was created to prevent _________, which is the practice of refusing to make loans on certain geographic areas

Answer 20

Redlining

Question 21

DODD Frank Act

Answer 21

This law requires RESPA and Truth in Lending to be combined

Question 22

The Real Estate Settlement Procedures Act (RESPA) applies to one-to-four family dwellings obtained through federally regulated lenders. RESPA may apply to _____, ________ and ________.

Answer 22

first mortgages
assumptions
refinance

Question 23

RESPA is a consumer protection law that requires lenders to disclose all closing costs to the consumer. Consumers are given what two items

Answer 23

closing cost estimate

information booklet

Question 24

A lender must wait _____ business days after providing the loan estimate before closing a mortgage loan

Answer 24

7

Question 25

The loan estimate must be given to the borrower within ____ business days of the loan application. The borrower then has ______ days to respond that he or she wishes to continue with the loan applications

Answer 25

3

10

Question 26

until the borrower indicates they are willing to proceed with the loan, the lender can only collect what?

Answer 26

A reasonable credit report fee

Question 27

What are typical credits of a buyer?

Answer 27

mortgages
good faith deposits
prorated fee on unpaid taxes
rent prorations

Question 28

What are typical debits of a buyer?

Answer 28

Credit report fee
origination fee 
survye fee
title fee
appraisal fee
recording fee 
prepaid items i.e. insurance, interest adjustments 
Prorated fee on paid taxes

Question 29

What are typical credits of a seller?

Answer 29

sale price
paid prorated taxes
prorated insurance

Question 30

What are typical debits for a seller?

Answer 30

real estate commission
transfer fee
deed preparation fee
unpaid taxes, prorated
mortgage to be held off 
Prorated rent
Deposit held by selle

Question 31

unpaid tax bill is a CREDIT to the buyer, and ________ to the seller

Answer 31

Debit

Question 32

Whose responsibility is it to transfer a title

Answer 32

Sellers