RESPA

Question 1

Reg X or RESPA applies to what transactions?

Answer 1

Conventional loans
FHA, VA, other govt sponsored loans
Purchase loans
Reverse  mortgages
Assumptions
Refi's
Property improvement loans
Equity lines of credit

Question 2

Which Transactions are not covered under RESPA?

Answer 2

All-cash sale
Sale where individual home seller takes back the mortgage
Business purpose loans
Assumptions not requiring lender approval
Loan coversions
Temporrary construction loans as long as permanent financing of 1-4 family residential property is not anticipated
Bridge loans
Vacant property unless construction/improvement to property within 2 years
Bona Fide transfers of a loan obligation in the secondary market

Question 3

Reg X defines Settlement Services as?

Answer 3

1. Origination, taking loan applications, processing, underwriting, and funding of federally related mortgage loans
2. Services provided by mortgage broker (appraisals, communication between borrow and lender)
3. Title services, insurability, issuance of title commitments, and title insurance policies

Question 4

The following service providers are NOT regulated by RESPA or subject to RESPA rules:

Answer 4

Building/remodeling contractors
Service and Repair contactors
Moving companies
Landscaping companies
Home improvement or design companies

Question 5

What disclosures must be given under TILA-RESPA at or within 3 days of a completed application?

Answer 5

Home loan Toolkit
Loan Estimate
Good Faith Estimate
Truth in Lending Disclosure
List of HUD-approved home counselors (RESPA)
Affiliated Business Arrangement (at or before time of referral)

Question 6

Section 9 of RESPA prohibits a seller from ___

Answer 6

Requiring the home buyer to use a particular title insurance company as a condition of sale unless the seller pays for the title insurance and all other title-related fees