RESPA

Question 1

RESPA (REAL ESTATE SETTLEMENT PROCEDURES ACT)

Answer 1

Reg X

Question 2

RESPA - PURPOSE

Answer 2

Eliminate Kickback, referrals

Question 3

RESPA applies to all —-

Answer 3

Real estate credit transactions for 1-4 family dwellings

Question 4

A loan’s initial APR must be disclosed to the consumer on the —-

Answer 4

Loan Estimate

Question 5

According to the FCRA, how many days does a credit information provider usually have to respond to the consumer after receiving a notice of a dispute?

Answer 5

30 days

Question 6

As a result of MDIA, how soon can a residential loan close?

Answer 6

7th business day after delivery of required disclosures

Question 7

The estimate for most settlement charges shown on a loan estimate must be available for at least —-

Answer 7

10 business days

Question 8

The APR on the initial loan estimate for a 30-year fixed rate loan is 5.99% and the APR on the Closing Disclosure is 6.25%. After redisclosure, how long must the borrower wait to close the loan?

Answer 8

3 business days after redisclosure

Question 9

According to MDIA, a “higher priced loan” is one that has —-

Answer 9

An APR that exceeds the applicable APOR by at least 1.5% on first liens

Question 10

In which federal law would you find the definition of a non-traditional loan?

Answer 10

SAFE Act

Question 11

A jumbo loan is aka —

Answer 11

Non-conforming loan

Question 12

The type of mortgage that covers more than one parcel or lot and is often used for financing subdivision developments is called a

Answer 12

Blanket mortgage

Question 13

Initial interest rates that are much lower than the normal interest rate, with the rate usually returning to the normal interest rate at the first adjustment is known as —-

Answer 13

Teaser Rate

Question 14

A mortgage loan, typically a second mortgage, that has a predetermined max loan amount, has an adjustable rate, can be borrowed against and paid off as needed, and has an interest only minimum monthly payment is known as —

Answer 14

HELOC

Question 15

If a borrower exercises his right to change from an adjustable rate mortgage to a fixed rate mortgage one time during the loan term, provided certain conditions are met, he has what type of mortgage?

Answer 15

Convertible ARM

Question 16

The difference between the index and the interest rate charged to the borrower with an ARM is known as the —-

Answer 16

Margin

Question 17

The type of mortgage that provides the borrower with a monthly check instead of the borrower paying a monthly payment is known as —-

Answer 17

Reverse Mortgage

Question 18

A loan in which the total payments over the life of the loan pay off the entire balance of principal and interest due at the end of the loan term is —-

Answer 18

Fully Amortizing

Question 19

Which element of an ARM is a statistical report that is a generally reliable indicator of the approximate change in the cost of money and may be used to adjust interest rate?

Answer 19

Index

Question 20

A reverse mortgage must be repaid if the home is unoccupied by the borrower for how long?

Answer 20

12 consecutive months

Question 21

Under RESPA, who would be subject to fines and penalties if a kickback is paid?

Answer 21

All parties

Question 22

RESPA is implemented under —

Answer 22

Regulation X

Question 23

Which includes the provision that mortgage relief companies may NOT collect any fees until they have provided consumers with a written offer from their lender or servicer that is acceptable?

Answer 23

MARS Rule

Question 24

What type of loan requires a non-refundable funding fee

Answer 24

VA Loan

Question 25

Requires the mortgagor to repay the entire balance of the loan if the property is sold, transferred or otherwise abandoned

Answer 25

Alienation Clause

Question 26

When evaluating a LE, what is an example of a charge subject to ZERO tolerance?

Answer 26

Fees paid to the creditor, mortgage broker or affiliated person