NCh7 Real Estate Settlement, And Procedures Act Flashcards
Who is RESPA implemented by?
Regulation X
What is the purpose of RESPA?
To regulate closings on a 1 to 4 family residential property (apartment complexes not covered)
Who is RESPA administered by?
CFPB, consumer financial protection bureau
What are what are the guidelines in choosing a title company with regards to RESPA?
Any party to the transaction can choose a title company and/or pay for the policy
Are rebates and referral fees, a violation of RESPA
No
Can a small referral gift be given to an unlicensed person who provides a referral to a licensee?
Yes
What took place in October 2015 regarding the truth in lending act and the RESPA?
The forms were combined and the truth in lending/RESPA integrated disclosure (TRID) went into effect
Within what time frame must the residential mortgage loan originator (RMLO) provide the loan estimate to the consumer
Within three days of the loan application
Within what timeframe does the borrower have after he receives the loan estimate to respond to the lender and indicate whether he wants to continue with the loan application or cancel his application?
10 days
Within what timeframe must the closing disclosure form be received by the consumer?
Three days before closing
What is the effect of any changes in the loan such as the APR, loan product or any last-minute negotiations in the contract?
It will trigger a new three day waiting. Period for the closing disclosure
The refusal to lend in a particular geographic area is called
Redlining
What is it called when an unscrupulous lender takes advantage of a consumers lack of knowledge regarding lending practices?
Predatory lending
Charging an interest rate higher than the legal limit is referred to as
Usury
