Real Estate Settlement Procedures Act (RESPA) - Reg X Flashcards
What does RESPA stand for?
Real Estate Settlement Procedures Act
What does RESPA apply to?
covered transactions
What does RESPA govern?
third party settlement service procedures and providers
What is Regulation X?
RESPA
What is Section 6 of RESPA?
Servicing
What does SDS stand for?
Servicing Disclosure Statement
When does SDS need to be signed?
at closing
What does STS stand for?
Servicing Transfer Statement
When do we need to send the borrower STS?
15 days prior to transfer
What does STDS stand for?
Servicing Transfer Disclosure Statement
When does STDS need to be sent?
30 days post transfer
How long is the post transfer “grace period”?
60 days
What is Section 8 of Regulation X?
kickbacks and referrals
Section 8 of RESPA says that NO thing of _______ can be given as a kickback for a referral
value
What can an lender require a borrower to use according to Section 8 of RESPA?
- appraiser
- credit reporting agency
- attorney
According to Section 8 of Reg X, it is bad to _________ ____ for any third parties other that and appraiser, credit reporting agency, and attorney.
require use
Criminal penalty for disregarding Section 8
$10,000 and/or 1 year
Civil penalty for disregarding Section 8
3 times all charges
Section 8 of RESPA says that legitimate fess/discounts for services are _________ and _________.
allowed and legal
Section 8 of RESPA says that fee-splitting, unearned fees, and referral fees are __________ and __________.
banned and illegal
What does Section 9 of RESPA state?
The lender/seller cannot require a specific title insurance company for borrower
What does Section 10 say about holding escrows?
Bank says MOST a creditor can require per month of escrows is 1/12 of the annual dues (a month)
What is the Section 9 MAX civil penalty?
3 times all charges made
For Section 10, what is the MAX cushion/overage (in addition to monthly escrows) allowed to be taken from borrower?
1/6th of annual dues (2 months)
