Miscellaneous 2

Question 1

RESPA doesn’t govern…

Answer 1

• > 25 acres
• income producing properties (farms/commercial/business)
• temp loans (bridge/contruction)
• loan modifications (where terms changed between Bor+Lender)
• sale of loans on secondary market

Question 2

RESPA Section 10 - escrow Max

Answer 2

• 1/6 OR 2 months of Bor’s annual tax/insurance for escrow/impound account
• $50 or more surplus, complete overage must be returned to the Borrower within 30 days of analysis

Question 3

VERIFY

What loan products do NOT require counseling list?

Answer 3

VERIFY

• reverse mortgage
• time shares

The Exception:
FHA HECM

For this type of reverse mort, Bor and heirs must participate in counseling requirements prior to closing

Question 4

VERIFY

Two types of Reset+Conditional

AND necessary provisions

Answer 4

• 5/25
• 7/23

Primary residence
Reset mort. is the only lien
No late payments in last 12 months
Bor responsible for new signing of docs/closing costs