RESPA

Question 1

Act: Real Estate Settlement Procedures Act (RESPA)
Reg:
Oversees:
Enforced:

Answer 1

Reg: X
Oversees: CFPB
Enforced: CFPB

Question 2

Real Estate Settlement Procedures Act (RESPA) is:

Answer 2

Consumer protections statute requires lenders/servicers to provide pertinent/timely disclosures r/t nature & cost of settlement process

Question 3

RESPA Applies to:

Answer 3

federally related mortgages either existing or to be placed on the real property, using loan proceeds. (1-4 family, TH, condo, manufactured homes for purchase/refinance)

Question 4

RESPA Exempts:

Answer 4

25 acres or more, business/commercial/agricultural use, temporary loans (< 2yrs & not converting to permanent terms with same bank), vacant lot where none of loan will be used to build, assumptions of loans, conversion of existing loan where no new note Is requires

Question 5

RESPA SECTIONS:

Answer 5

Section 6, 8, 9, 10

Question 6

RESPA Section 6:

Answer 6

requires the servicer to acknowledge the receipt of a consumer complaint in
writing with in 20 business days of receipt.

Question 7

RESPA SECTION 8:

Answer 7

No kickbacks/referrals/unearned fees of anything of value (have to do 7/13 things to get RMLO compensation)

Question 8

RESPA SECTION 9:

Answer 8

No seller can require purchaser to use a specific title company

Question 9

RESPA SECTION 10:

Answer 9

Escrow account analysis required initially and annually. Only collect 1/12 month at a time and only retain up to 1/6 yr cushion. If >$50 over allowance, must refund.

Question 10

RESPA

Notices of Transfer of Loan Servicing

Answer 10

New and old servicer must inform borrower 15 days before effective date when loan servicing is sold/assigned/transferred, and old company must accept payments 60 days after effective date

Question 11

RESPA

Force-Placed Insurance

Answer 11

Servicer must mail or deliver an initial written notice to the borrower at least
45 days before assessing a charge or fee related to force-placed insurance. Must send a reminder notice at least 30 days after the initial notice is mailed or delivered and at least 15 days before the servicer assesses charges or fees.

Question 12

RESPA Business Days

Answer 12

General Business Days- Monday-Friday( No Holidays ,Saturday’s or Sunday’s)

Question 13

RESPA DISCLOSURE ARE WITHIN…..

Answer 13

Within 3 General Business Days of Application received (unless app is denied before the 3 days are up)

• Special Information Toolkit
• GFE
• Mortgage Servicing Disclosure Statement

Question 14

Special information Booklet is:

Answer 14

“Your Loan Tool Kit”- only for purchase not refinance. Can be printed in
any font, language, color and with pictures-but can’t be made part of larger document

Question 15

Good Faith Estimate (GFE) is:

Answer 15

Used for Reverse Mortgages

Question 16

Mortgage Servicing Disclosure Statement is:

Answer 16

Loan servicing may be assigned/sold/transferred and this

loan is covered under RESPA

Question 17

Disclosures at or prior time to referral:

Answer 17

ffiliated Business Arrangement (ABA) - Controlled Business Arrangement(CBA)

Question 18

Affiliated Business Arrangement (ABA) - Controlled Business Arrangement(CBA)

Answer 18

1% ownership or greater and can only get profits from that company based off of interest in ownership. Must disclose relationship/ownership in company and estimated charges. Cannot require use .

Question 19

Required Providers:

Answer 19

Must disclose at time of application if required

Question 20

Disclosures at closing:

Answer 20

HUD-1/HUD-1A (Uniform Settlement Statement- UST)

Question 21

HUD-1/HUD-1A (Uniform Settlement Statement- UST) is:

Answer 21

(used only for certain loans – see GFE above) must be provided 24 hrs in advance if requested. Must give copies to borrower, seller and lender (only borrower may waive in writing). Lender/servicer must keep HU D on file for 5 yrs *look at HUD and compare G

Question 22

RESPA Penalties Sections:

Answer 22

Section 8, 9, 10.

Question 23

Penalty Section 8:

Answer 23

Civil-3x referral fee/Kickback,criminal-$10k/1yr in jail.

Question 24

Penalty Section 9:

Answer 24

3x Title Fee

Question 25

Penalty Section 10:

Answer 25

$50 for each occurrence in past 12 months, not to be greater than $100k, if intentional $100 for each occurrence and no limit.

Question 26

What shows whether you have a prepayment penalty?

Answer 26

The Hud-1, TIL, GFE, promissory note, LE and CD