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Additional CRCM > RESPA > Flashcards

RESPA Flashcards

1
Q

Why was RESPA created

A

To require lenders, mortgage brokers, and services of home loans to provide borrowers with accurate and timely disclosures of the nature and costs of residential real estate settlement services

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2
Q

Respa protects borrowers from

A

Abusive practices

Kickbacks

Unfair escrow requirements

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3
Q

What does respa cover

A

Non temporary 1st or second lean for 1-4 family

Loan guaranteed by HUD or federal agency

Intended for sale to fans, fhlmc, gnma

Refi of federally related mortgage

Residential real property in US territory

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4
Q

A respa refinancing means the

A

Existing obligation is satisfied and replaced by a new obligation with

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5
Q

When the same lender is involved for a refinancing, the transaction is not considered a refinancing if

A

No change in terms. Just payment renewal

Apr reduction

Court order

Workout agreement

Renewal of optional insurance

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6
Q

A lender that meets the following criteria should comply with respa if the make respa type loans

A

Lender has federally insured deposits

Lender regulated by federal agency

Creditors under consumer credit protection act

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7
Q

Can a mortgage broker be an employee of the lender

A

No

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8
Q

What services does a mortgage broker provide

A

Take the application
Process the loan
Underwrite the loan
Fund the loan

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9
Q

What is exempted from RESPa

A

Business purpose loans

Temp loans less than 2 years

Vacant lot loans - unless something will be put on it in two years

Conversion of a federal secured loan if it is consistent with original mortgage

Loans that require a loan Estimate, closing disclosure and a special information booklet under reg z

Loans secured

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10
Q

A GFE, a HUD 1, or special information booklet is not required for what type of loans

A

Tila loans that require a loan estimate, closing disclosure, and a special information booklet

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11
Q

What six items make up an application

A 
Name
Monthly income
SSN
Property address
Estimated value
Loan amount sought
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12
Q

Does respa preempt state laws

A

Yes

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13
Q

Do respa disclosures have to be provided other than English

A

Yes

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14
Q

What does servicing include

A

Receiving payments from borrower of loan

Making payments to owner of a loan

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15
Q

How soon must servicing disclosures be give

A

Within 3 business days of the receipt of an application unless the application is denied

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16
Q

How must a servicing disclosure be delivered

A

By hand, mail, fax, or other electronic means

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17
Q

Can the broker or lender deliver the servicing disclosure

A

Yes

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18
Q

What does the servicing disclose let the borrower know

A

If the loan will be sold or transferred, or kept by the lender, or maybe kept by the lender

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19
Q

I’d there is more than one applicant at the same address, does a servicing disclosure need to be given to both

A

No

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20
Q

For closed end dealer or broker loans, who is responsible for providing the gfe

A

The lender unless he makes sure they did it

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21
Q

Does a lender have to provide a gfe if they don’t offer that type of loan

A

No

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22
Q

How soon should the gfe be provided

A

Within three days of the complete application

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23
Q

How soon should the estimate for the charges and terms be available

A

At least 10 days from when the Gfe was provided with the exception of the interest rate

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24
Q

What must the gfe show

A

Estimate borrowers settlement costs (can use area estimates)

Fees to service provider

Cost that will be listed on HUD 1

Payment that reflects only principal ,interest and mortgage insurance

Origination charges

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25
Q

What disclosures on the gfe can’t be changed before consummation

A

Origination charge

Transfer taxes

Credit for the interest rate lock

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26
Q

The sum of the following gfe items may not change more than10%

A

Lender required settlement services where the lender selects the service provider

Lender required services, title services,

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27
Q

If the charges on the original gfe are out of tolerance the loan originator must provide the borrower with what

A

A new gfe

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28
Q

How does interest dependent changes impact a new gfe

A

A revised gfe must be provided within 3 days

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29
Q

If the borrower requested changes to the loan that change settlement charges or terms, the. What has to be provided to the customer

A

A revised gfe

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30
Q

What is a qualified change gfe circumstance

A

Acts of god. Ie war

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31
Q

Can lenders and mortgage brokers permitted to charge any fees before the delivery of a GFE

A

No

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32
Q

When can a broker and lender charge additional fees

A

Once the gfe has been given and the applicant indicates a desire continue with the loan

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33
Q

Can you charge to prepare a gfe

A

No

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34
Q

Can lenders and brokers require applicants to verify application information prior to issuance of a gfe

A

No

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35
Q

If lender allows borrower to shop for service providers, what must be given along with the gfe

A

A list of providers

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36
Q

If the borrower chooses to use a provider not on the lender list, then tolerances levels do or do not apply

A

Do not

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37
Q

Affliate business arrangement disclosure is required when

A

There is a referral to an affliate

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38
Q

When does the affiliates arrange tent disclosure have to be given

A

At the time of referral or with the gfe it should show

Nature of relationship
Estimated charge
Place for borrower to sign
And it must be on a separate piece of paper

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39
Q

The special information booklet also known as the home loan tool kit is only required for what kind of loan

A

First lien purchase money

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40
Q

When must the home loan tool kit be provided

A

Deliver or mailed to the applicant within three business days of receiving application

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41
Q

Does the home loan tool kit need to be delivered if the loan is denied or withdrawn

A

No

42
Q

Does the mortgage broker deliver the home loan tool kit if a lender is involved

A

Yes

43
Q

What type of loan is the HUD disclosure give. Too

A

All reverse mortgages

44
Q

When the hud disclosure it be made available

A

One day in advance of closing

45
Q

How many copies of the hud must the lender retain

A

Five years after settlement unless the lender does not service the loan

46
Q

Does the lender transfer the hud statement as well if they do not retain the servicing on the loan

A

Yes. And the new person must keep it for 5 years

47
Q

Can a fee be charged for completion of respa or tila disclosures

A

No

48
Q

Lender payments to mortgage brokers are legal when

A

The payment is good for services actually furnished

The payment is reasonably related to the value of the goods or services furnished

49
Q

Can a person give or receive a portion of a fee for servicimg connected with a federally related mortgage outside of the services actually performed

A

No

50
Q

What does a servicer include

A

Any person responsible for servicing a federally related mortgage loan

Receiving a payment
Making a payment to owner of loan
Making payment to borrower in case of a reverse mortgage

51
Q

Servicing disclosures must be what

A

Clear and conspicuous

Available in other languages

Can be provided in electronic form

May uses common abbreviations

52
Q

Notice of Transfers is required for

A

Transfers or Sales or assignment for mortgage loans

53
Q

What are some exclusions if not delivering a transfer of servicing notice

A

Transfer between affliates

A transfer because of a merger

When a mortgage is assigned to the FHA

54
Q

Who must deliver the notice of transfer servicing notice

A

The transfer servicer and the transfer servicer

55
Q

In how many days must the transfer deliver the notice

A

15 days before effective date of the servicing transfer

56
Q

How soon should the transferee notice be delivered to the borrower

A

Not more than 15 days after the effective date of the transfer

57
Q

Can notice of transfer notices be combined

A

Yes

58
Q

What are the contents of a notice of transfer of servicing

A

Effects date of transfer

Name address telephone number of the transferre servicer

Name address telephone number of the transfer error servicer

Date transferee will stop taking payments

Statement that transfer does not impact loan terms

59
Q

After a loan is transferred, a lender cannot charge a late fee for how many days if the borrower made a payment to the old company

A

60

60
Q

Escrow payment accounts should make what type of payments for the borrower

A

Timely

61
Q

How many days must the escrower refund the balance of an escrow account when a loan is paid in full

A

20 business days unless the borrower wants to apply it to a new loan

62
Q

If a servicer received a wriiten notice with their name, information that allows the servicer to identify the loan, and the error that occurredfrom the borrower it must comply with

A

The error resolution procedures

63
Q

A servicer does not have to respond to a notice of error of the

A

Notice is duplicative

Is overly broad

Specific error can not be determined

Received more than a year after a servicing transfer

64
Q

How can a servicer respond to a servicing error notice

A

By correcting the error with a written notice of the correction, the effective date of the correction, contact info

By conducting a reaaonable investigation and providing the borrower with a written statement t that no error has occurred

65
Q

How soon does the servicer have to contact the borrower after receiving a servicing error notice

A

5 business days. The borrower must be given a written response

66
Q

How soon does the servicer have to investigate the error after receiving a servicing error notice

A

7 business days

67
Q

If a servicer received a notice less than how many days before a foreclosure sale, does the servicer have to comply with the notice

A

No, but they must respond in good faith

68
Q

If a servicer received an error notice for all other errors, the time limit may be extended by how many business days if the servicer notifies the borrower of the extension and the reason for it in writing

A

15

69
Q

Does the servicer have to provide the borrower copies of documentation after receiving a servicing error notice

A

Yes. Within 15 business days at no charge

70
Q

Can a servicer charge a fee as a condition to respond to a servicing error notice

A

No

71
Q

T/f. A servicer can report adverse payment information within 60 days after receiving g the servicing error not rice

A

False

72
Q

In what circumstances does a servicer not have to respond to information requests

A

Information requested before

Information is confidential

Request not related to borrower loan

Request is overly burdensome

The request is untimely

73
Q

If the servicer does not have to fulfill an information servicing request because of an exception, how soon do they have to let the borrower know

A

5 business days

74
Q

During information servicing request, can adverse action information be sent to a credit bureau

A

Yes

75
Q

What type of hazard insurance is not considered forced place

A

Flood insurance

Servicer renewed by the servicer according to Respa information

Insurance renewed by the servicer and borrower discretion

76
Q

Can a servicer assess a premium charge or fee related to force places insurance

A

No unless the borrower has failed to maintain hazard insurance

77
Q

What must the servicer do before they charge a borrower for forced place insurance

A

Send written notice 45 days in advance

Allow 30 days for borrower to provide evidence it was paid before sending second reminder

Send second notice 15 days before the fee is accessed

78
Q

Forced place notice requirements include

A 
Date of notice
Servicer address
Borrower name and address
Statement telling borrower insurance expired and we will get it at your expense and our insurance may be more
How the bore can resolve
79
Q

What must the second forced place notice include

A

This is the final notice

This is what the cost will be

80
Q

For insurance with no proof of continuous coverage, the servicer mist

A 
Date the notice
Servicer name and address
Borrower name and address
Hey insurance is required
Call me at this number if you have questions
This is the final notice
81
Q

Before a servicer can renew forced placed insurance they must

A

Deliver notice to borrower 45 days in advance

82
Q

Servicer must maintain policies and procedures that

A 
Are accurate and timely
Investigate and respond and make corrections
Submit document for foreclosure process
Deal with probate
Identify loss mitigation
83
Q

When are early intervention requirements not required

A

Bankruptcy

When a borrower tells servicer not to contact them after receiving a notice

84
Q

A servicer must maintain delinquency policies and procedures that

A

Assign personnel to a delinquent borrower 45 days after delinquency

Make personal available to delinquent borrower by phone and payment options until they made two consecutive payments

Ensure servicer can provide live responses to borrower calls in a timely manner

85
Q

What is a completed loss mitigation application

A

One where the servicer has received all of the information that is needed for evaluating purposes

86
Q

What must the servicer do if it receives a “completed”loss mitigating application in 45 days

A

Acknowledge the receipt in writing within 5 business days

87
Q

If loss mitigation application is received more than 37 days before foreclosure sale then within 30 days the servicer must

A

Evaluate the borrower options

Provide the borrower with a notice of their options and they have the right to appeal

88
Q

Can a servicer evaluate an incomplete application that was incomplete for a significant amount of time and offer a loss mitigtion option

A

Yes

89
Q

A loss mitigation application is considered facially complete when

A

The borrower submits all documents an information required by the servicer

90
Q

If a loan mitigation application is denied, what must the servicer do

A

Send a notice that states the reason for denial

And that the borrower can appeal

91
Q

What response options do borrowers have for loss mitigation offers

A

If offer received >90 days than foreclosure, the borrower should respond no earlier than 14 days after offer

If < 90 days but more than 37 days before foreclosure , the borrower should respond no earlier than 7 days

92
Q

Loss mitigation offers not accepted within the dead line are considered to be what

A

Rejected unless borrower makes a payment under the plan but still has some outstanding to dos

93
Q

Servicer can not file for foreclosure unless the borrower is how many days delinquent

A

120, or they violated a due on sale clause, or a subordinate lien holder is foreclosing

94
Q

If the borrower completed a complete loss mitigation application during the preforeclorse process the servicer may not make the first notice unless

A

The servicer let the borrower know he does not qualify

The borrower has not requested an appeal

The borrower rejected all options

The appeal has been denied

95
Q

What is the probation on a foreclosure sale

A

Borrower has 37 days before the sale to submit complete application. If so, the servicer cannot move forward with judgement unless:

The servicer let borrower know they don’t qualify
The borrower rejects the options
The borrower fails to perform per the agreement

96
Q

How many days does the servicer have to answer an appeal

A

30 days

97
Q

What must a lender do when they establish an escrow account

A

Conduct an escrow analysis to determine how much the borrower must deposit into the account

98
Q

How often should an escrow account analysis be performed

A

Annually

99
Q

When does the lender submit an initial escrow account statement to the borrower

A

At settlement or within 44 days of settlement. It should show:

The monthly payment and what is going to escrow

Itimezatiin of what escrow will pay

The distribution dates

A trail running balance

100
Q

The annual account statement should contain

A

The payment amount and what is going to escrow

How it looked last year

Total amount paid to escrow

The account balance at the end of the year

An explanation of how any surplus was handled

101
Q

What is a escrow short year statement

A

A statement the borrower gets within 60 days if they payoff a loan

Additional CRCM (19 decks)

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