RESPA Flashcards
RESPA
Also known as a regulation, X, passed in 1974 regulated by consumer finance protection bureau, also known as CFPB
Purpose of RESPA
Account for all monies associated with a Transaction
All costs associated with settlement
Lender servicing practices
Escrow account practices
Business relationships between settlement, service providers, and other parties in the transaction 
RESPA applies to which types of properties
Home purchase loans
Refinances
Lender approved loan assumption
Property, improvement, loans or heloc
Equity lines of credit
Reverse Mortgages
Phones made, or insured by an agency of the federal government
Loans intended to be sold by Fannie Mae Jeannie Mai, or Freddie Mac
Where RESPA does not apply
All Cash sale
Seller financing
Rental property transaction
Investment or business purpose transaction
Construction loans from the lender other than the lender took out the loan
Government transactions
Large parcels of land containing 25 acres or more
Parts of an application
Name
Social Security number
Income
Address of the property
Loan amount
Annual percentage rate
Re-disclosure is needed when:
The cost for services changed 10% or more from when the original estimate was sent
The cost of lender or broker fees, government, recording, and or transfer tax, if applicable
Loan cost that are included in the original APR calculations increase so that the newly calculated APR increases by an eighth of a percentage or more 
Escrow account regulations
1/12 of a total of all dispersements payable during the year
The lender me hold a cushion of up to an amount, not to exceed 1/6 of the annual dispersements
All accounts must be reviewed once every 12 months and any amount of more than $50 must be refunded within 30 days 
Shortage in escrow
Do nothing, spread the shortfall over 12 months, require the borrowers, repay the deficiency over two months or require a lump sum 
