RESPA

Question 1

Who has oversight over RESPA

Answer 1

The CFPB

Question 2

Purpose of RESPA

Answer 2

(real estate settlement protection act)Educate borrowers on costs associate with loans, eliminates kickbacks and referral fees, and establishes rules for escrow

Question 3

Why types of homes does it protect borrowers against?

Answer 3

1-4 family dwelling’s, condos, manufactured housing

Question 4

What regulation does respa have?

Answer 4

Regulation X

Question 5

What is a Chattel Mortgage

Answer 5

Mortgage on the structure that does not attach to the land.

Question 6

What docs are associated with RESPA?

Answer 6

Written List of 10 HUD approved homeownership counseling orgs and special information booklet

Question 7

What is the Special Information Booklet

Answer 7

It is provided to purchase applicants only and must be provided at application and no later then 3 business days of application

Question 8

What estimate form do HELOCS, reverse mortgages and chattel mortgages get ?

Answer 8

Good faith estimate form and Hud -1

Question 9

What is Hud- 1

Answer 9

Used in purchase , shows buyer and seller, only used on HECM

Question 10

What is Hud- 1a

Answer 10

Used in refinance, shows borrower only

Question 11

What is Section 6 of RESPA

Answer 11

The service /transfer disclosure statement , which discloses to borrower whether the lender taking the app intends to service loan or transfer to someone else

Question 12

What is Section 8 of RESPA

Answer 12

Prohibits anyone giving or accepting anything of value for referral on a mortgage loan

Question 13

Can you split 50/50 on an ad with a realtor

Answer 13

Yes but has to have equal space in the ad.

Question 14

Can you pay for a referral?

Answer 14

No

Question 15

What is ABA

Answer 15

Affiliated Business Arrangement - exists when you are in position to refer business or have beneficial ownership of of 1% in provider of settlement services

Question 16

Under RESPA a referrer can receive compensation only if:
a.) They own 100% of the referring company
b.) when a direct referral is made to provider
c.) When provider is an “associate” as defined by RESPA
d.) Referrer owns less than 5% of Provide

Answer 16

C.

Question 17

What is the fine for violating section 8 of respa

Answer 17

10k , or year in prison or both

Question 18

How long must you maintain servicing disclosure and aba disclosure and closing disclosure?

Answer 18

Min of 5 years

Question 19

What is section 9 of REPSA

Answer 19

Prohibits home sellers from requiring home buyers to purchase their settlement services from a title company as a condition of sale

Question 20

How much can a buyer sue a seller for violating section 9

Answer 20

Amount equal or 3 times all charges made for the title insurance

Question 21

What is section 10 of Respa

Answer 21

Lenders are allowed to collect 2 months cushion making the max collectable for escrow 14 months

Question 22

How many days of closing the servicer must provide an initial escrow account statement

Answer 22

45 days

Question 23

How often must lenders review borrower escrow acct and how much do they have to return

Answer 23

Annually and any over of 59$ or more within 30 days