Disclosures

Question 1

The “Initial Escrow Statement” which is required by RESPA, has what deadlines?

Answer 1

Must be provided to borrower 45 days after closing, but is usually provided at closing. This statement provides an estimate of escrow payments (taxes, insurance)

Question 2

What’s important to know about an “Escrow closing notice”?

Answer 2

When a borrower requests cancellation of an escrow account, the notice is due three business days before the closing of the consumer’s escrow account. When the servicer is going to cancel the escrow account, a notice at least 30 days in advance before the account closes.

Question 3

It is required by RESPA that an “Affiliated Business Arrangement Disclosure” by provided when?

Answer 3

At the time of referring a borrower to a settlement service provider

Question 4

Explain what an “Initial Rate Change Disclosure” is used for and what it’s deadlines are:

Answer 4

Required by TILA. It is intended to provide borrowers with information to prepare them for interest rate adjustments that will result in changes in payment amounts.

It must be provided at least 210 days, but no more than 240 days, before the first payment based on the new rate is due.

Question 5

When should borrowers be notified of rate changes that will take place affecting their monthly payment?

Answer 5

disclosures are generally due no less than 60 days, and no more than 120 days, prior to an interest rate and payment change

Question 6

What does HOEPA stand for?

Answer 6

Home Ownership and Equity Protection Act. The law requires certain disclosures and clamps restrictions on lenders of high-cost loans

Question 7

What does FACTA stand for?

Answer 7

Fair and Accurate Credit Transactions Act. Protects consumers from identity theft

Question 8

Required by the ECOA, the Notice of Action Taken and the Notice of Adverse Action is to be provided to applicants no later than how long?

Answer 8

30 days after receipt of application

Question 9

RESPA requires the Servicing Transfer statement to be provided when?

Answer 9

15 days prior to the effective date of transfer

Question 10

RESPA requires the Mortgage Servicing Disclosure Statement to be provided when?

Answer 10

3 days after loan application

Question 11

TILA requires re-disclosure of the APR on a regular loan if it varies by more than how much?

Answer 11

1/8th of a percent at least 3 days prior to closing.