Real Estate Settlement Procedures Act (RESPA) - Reg X

Question 1

What does RESPA stand for?

Answer 1

Real Estate Settlement Procedures Act

Question 2

What does RESPA apply to?

Answer 2

covered transactions

Question 3

What does RESPA govern?

Answer 3

third party settlement service procedures and providers

Question 4

What is Regulation X?

Answer 4

RESPA

Question 5

What is Section 6 of RESPA?

Answer 5

Servicing

Question 6

What does SDS stand for?

Answer 6

Servicing Disclosure Statement

Question 7

When does SDS need to be signed?

Answer 7

at closing

Question 8

What does STS stand for?

Answer 8

Servicing Transfer Statement

Question 9

When do we need to send the borrower STS?

Answer 9

15 days prior to transfer

Question 10

What does STDS stand for?

Answer 10

Servicing Transfer Disclosure Statement

Question 11

When does STDS need to be sent?

Answer 11

30 days post transfer

Question 12

How long is the post transfer “grace period”?

Answer 12

60 days

Question 13

What is Section 8 of Regulation X?

Answer 13

kickbacks and referrals

Question 14

Section 8 of RESPA says that NO thing of _______ can be given as a kickback for a referral

Answer 14

value

Question 15

What can an lender require a borrower to use according to Section 8 of RESPA?

Answer 15

• appraiser
• credit reporting agency
• attorney

Question 16

According to Section 8 of Reg X, it is bad to _________ ____ for any third parties other that and appraiser, credit reporting agency, and attorney.

Answer 16

require use

Question 17

Criminal penalty for disregarding Section 8

Answer 17

$10,000 and/or 1 year

Question 18

Civil penalty for disregarding Section 8

Answer 18

3 times all charges

Question 19

Section 8 of RESPA says that legitimate fess/discounts for services are _________ and _________.

Answer 19

allowed and legal

Question 20

Section 8 of RESPA says that fee-splitting, unearned fees, and referral fees are __________ and __________.

Answer 20

banned and illegal

Question 21

What does Section 9 of RESPA state?

Answer 21

The lender/seller cannot require a specific title insurance company for borrower

Question 22

What does Section 10 say about holding escrows?

Answer 22

Bank says MOST a creditor can require per month of escrows is 1/12 of the annual dues (a month)

Question 23

What is the Section 9 MAX civil penalty?

Answer 23

3 times all charges made

Question 24

For Section 10, what is the MAX cushion/overage (in addition to monthly escrows) allowed to be taken from borrower?

Answer 24

1/6th of annual dues (2 months)