Colorado Closings

Question 1

What does TRID stand for in real estate transactions?

Answer 1

TILA RESPA Integrated Disclosure

Question 2

In cases of conventional loans with private mortgage insurance (PMI), when is the premium for mortgage insurance typically paid?

Answer 2

Before closing

Question 3

What fees are typically paid by the borrower at closing for FHA-insured loans?

Answer 3

Mortgage insurance premium (MIP)

Question 4

Who is responsible for paying the appraisal fee in a real estate transaction?

Answer 4

The buyer

Question 5

In a real estate transaction, who is responsible for covering the expenses related to maintaining adequate property insurance?

Answer 5

The buyer

Question 6

What entry is made for a loan assumption?

Answer 6

Debit Seller
Credit Buyer

Question 7

Who pays for title insurance for the buyer?

Answer 7

The seller

Question 8

How is the balance due to the seller on the closing worksheet?

Answer 8

Debit Seller
Credit Broker

Question 9

How is the balance due from the buyer show on the closing worksheet?

Answer 9

Credit buyer
Debit Broker

Question 10

Unpaid HOA

Answer 10

Debit Seller, Debit Buyer (maybe credit broker)

Question 11

Unpaid Taxes

Answer 11

Debit Seller, Credit Buyer

Question 12

Loan Discount points:

Answer 12

Are considered prepaid interest

Question 13

Net loan proceeds are entered on the settlement sheet as a?

Answer 13

Debit to title/broker
Single line entry

Question 14

The colorado Documentary fee is charged to who?

Answer 14

The buyer (they benefit from the purchase)

Question 15

How many months of prorated taxes can a lender require on a new loan?

Answer 15

3 months.

Question 16

How much does each discount point increase the yield?

Answer 16

.125

Question 17

What is the purpose of the Monthly Bank Reconciliation Worksheet?

Answer 17

To reconcile the escrow bank account with office records

Question 18

Which office accounting records provide a complete listing of everything that happens in a transaction in chronological order?

Answer 18

The monthly bank reconciliation worksheet, the beneficiary ledgers and the broker’s ledger

Question 19

Who must be clearly identified as the party designated to hold the earnest money in the sales contract?

Answer 19

The buyers agent

Question 21

When is the journal maintained in real estate transactions?

Answer 21

When the broker receives or is designated as custodian for money belonging to others