RESPA

Question 1

What does RESPA stand for?

Answer 1

Real Estate Settlement Procedures Act

Question 2

What regulation is RESPA?

Answer 2

Regulation X

Question 3

What is prohibited under Section 8 of RESPA?

Answer 3

Kickbacks, fee splitting, and unearned fees

Question 4

Who enforces RESPA?

Answer 4

Consumer Financial Protection Bureau (CFPB)

Question 5

A violator may be fined how much for receiving or providing kickbacks?

Answer 5

$10,000 and/or imprisonment for up to one year.

Question 6

What is the maximum cushion on escrow accounts according to RESPA Section 10?

Answer 6

TWO MONTHS (1/6 of a year) of taxes and insurance payments over the maximum amount needed to satisfy the charges when they come due.

Question 7

How often are lenders required to provide borrowers with a summary of the escrow account?

Answer 7

Once per year.

Question 8

What is the “Required Use” Provision?

Answer 8

RESPA Section 9 - barring mandatory use of a title company.

Question 9

What is a mortgage broker?

Answer 9

A firm or individual that matches borrowers and lenders. Does not retain servicing, does not use it’s own funds, and is not considered a lender.