RESPA

Question 1

RESPA Overview

Answer 1

-Reg X
-Purpose - To educate borrowers on the costs of their loans
-Enforced by CFPB
- Does not apply to vacant land, 25 acres or more, commercial or business loans, the government, temporary financing
-Prohibits charging 3rd part fees > actual charge

Question 2

Section 6

Answer 2

-Regulates the servicing of mortgage loans (transfer of servicing)

Question 3

Sect 6 Transfer of Servicing Disclosure

Answer 3

Mst provide within 3 business days of application

Question 4

Goodbye Letter

Answer 4

15 days prior to the transfer of servicing to another servicer

Question 5

Hello letter

Answer 5

From the new servicer within 15 days of the effective date of transfer

Question 6

No late fees can be charged within ____ days of transferring service

Answer 6

60

Question 7

Section 8

Answer 7

-Prohibits referral fees & kickbacks (a think of value)
-Affiliated Business arrangements (AfBA) disclosure at the time of referral
-Penalty of $10K fine or one year in prison or both

Question 8

Section 9

Answer 8

Prohibits requiring the purchase of settlement services as a condition for sale of a property

Question 9

Section 10

Answer 9

Regulates the Escrowing of property tax and insurance

Question 10

Initial Escrow Disclosure

Answer 10

Within 45 calendar days of settlement

Question 11

Annual Escrow Notice

Answer 11

within 30 days of completion of the computation rule

Question 12

Maximum that can be collected at closing for the escrow account

Answer 12

1/6th (or two months) cushioned (total of 14 months)

Question 13

In monthly payments

Answer 13

1/12th can be collected

Question 14

Additional Disclosures

Answer 14

-HUD-1 required on non-TRID loans (reverse and HELOC)
-Good faith estimate (GFE) - required on non-TRID loans (reverse and (HELOC)
-Home loan toolkit - 3 business days of application on purchase transactions
- Homeownership counseling - required ALL applicants receive a homeownership counseling disclosure within 3 business days of app.