TEST TIPS

Question 1

With the right of rescission

Answer 1

With the right of rescission, it is extremely important to remember that it only applies to
owner-occupied refinance transactions. It is easy to get tripped up in a question if they are
asking about the right of rescission and you don’t notice that they are asking about the right
of rescission on a purchase transaction. There is no such thing as a right of rescission on
purchase transactions!

Question 2

You need to remember each of these federal laws by their

Answer 2

You need to remember each of these federal laws by their full name, their acronym and in some situations their regulation letter. In this situation, you need to remember that RESPA is the Real
Estate Settlement Procedures Act, RESPA and Regulation X. It helps with those that have the
regulation letters to make a device to remember them, a good one for RESPA is REXPA because
RESPA’s regulation is X.