RESPA Flashcards
RESPA (REAL ESTATE SETTLEMENT PROCEDURES ACT)
Reg X
RESPA - PURPOSE
Eliminate Kickback, referrals
RESPA applies to all —-
Real estate credit transactions for 1-4 family dwellings
A loan’s initial APR must be disclosed to the consumer on the —-
Loan Estimate
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?
30 days
As a result of MDIA, how soon can a residential loan close?
7th business day after delivery of required disclosures
The estimate for most settlement charges shown on a loan estimate must be available for at least —-
10 business days
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?
3 business days after redisclosure
According to MDIA, a “higher priced loan” is one that has —-
An APR that exceeds the applicable APOR by at least 1.5% on first liens
In which federal law would you find the definition of a non-traditional loan?
SAFE Act
A jumbo loan is aka —
Non-conforming loan
The type of mortgage that covers more than one parcel or lot and is often used for financing subdivision developments is called a
Blanket mortgage
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 —-
Teaser Rate
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 —
HELOC
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?
Convertible ARM
The difference between the index and the interest rate charged to the borrower with an ARM is known as the —-
Margin
The type of mortgage that provides the borrower with a monthly check instead of the borrower paying a monthly payment is known as —-
Reverse Mortgage
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 —-
Fully Amortizing
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?
Index
A reverse mortgage must be repaid if the home is unoccupied by the borrower for how long?
12 consecutive months
Under RESPA, who would be subject to fines and penalties if a kickback is paid?
All parties
RESPA is implemented under —
Regulation X
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?
MARS Rule
What type of loan requires a non-refundable funding fee
VA Loan
Requires the mortgagor to repay the entire balance of the loan if the property is sold, transferred or otherwise abandoned
Alienation Clause
When evaluating a LE, what is an example of a charge subject to ZERO tolerance?
Fees paid to the creditor, mortgage broker or affiliated person
