RESPA Flashcards
What is the purpose of RESPA?
- Helps consumers to become better for closing services on a loan.
- Eliminate kickbacks and referral fees
What kind of loans does RESPA cover?
- 1-4 family units
2. Government loans (FHA, VA, USDA)
Transactions NOT covered by RESPA?
- A construction loan
2. Does not cover an all cash sale
What does the CD replace?
- The HUD 1 settlement statement
2. Final Truth in lending act
What has to be delivered within three days of the Loan Application?
- Mortgage Servicing Disclosure
- Special Information booklet
- Affiliated Business Arrangement
Special information booklet is also known as what?
Home loan tool kit
Who made the special information booklet?
CFPB
If there are two borrower on a loan, who does the special information booklet have to be sent to?
Either one
In addition with the special info booklet, mortgage servicing Disclosure and affiliated business arrangement, there must be provided what document?
Home Ownership counseling Disclosure
How many counseling services must be provided in the Home Ownership Counseling Disclosure?
10
What do Escrow accounts include?
- Mortgage Insurance
- Property Taxes
- Hazard and Flood
What is the importance of an escrow account?
Ensures the payments of the costs of taxes and insurance etc.
How many days does the servicer have before they must give notice of transfer to the borrower?
15 Days
Mortgage broker must disclose the fees they will collect on what Document?
Mortgage Broker Fee Agreement
Section 8 of RESPA includes what?
Kickbacks, fee splitting and unearned fees
