TRID 1

Question 1

What does TRID stand for?

Answer 1

• TILA/RESPA Integrated Disclosure
• Truth in lending
• RESPA
• Integrated
• Disclosure.

Question 2

What does TILA stand for?

Answer 2

The Truth in Lending Act

Question 3

Truth in Lending Act

Answer 3

• TILA
• Born in 1968
• Consumer Protection Act regarding the cost of credit.
• Consumers must be given detailed information and Loan Estimate 3- page document the consumer gets
  within 3 days of getting a mortgage loan specific disclosures at the time of the loan.
• Also, known as Regulation Z

Question 4

Loan Estimate

Answer 4

3- page document the consumer gets
within 3 days of getting a mortgage loan.

Question 5

Trigger Terms Truth in lending In advertising a lender cannot say

Answer 5

• Specific Interest rate
• Down payment amounts
• Monthly payment amount
• Dollar amount of the finance charged
• Term of loan

Question 6

Trigger Terms Kickoff the Need For

Answer 6

• Cash price
• Required down payment
• APR
• Amount of all payments and due dates.

Question 7

“APR” stands for

Answer 7

Annual Percentage Rate

Question 8

Right of Rescission

Answer 8

when a borrower is getting a loan under Reg Z (truth in lending) the borrower has a 3-day period that they can fully cancel the loan. Does not apply to purchase money mortgages. Home buyers do not have the right of rescission.

Question 9

The acronym “TRID” stands for:
A: TILA/RESPA Integrated Disclosure
B: Truth In Real Investment Disclosure
C: Trust In Real Investment Disclosure
D: Transfer Of Reconveyance Integrated Disclosure

Answer 9

A: TILA/RESPA Integrated Disclosure

Question 10

The acronym “TILA” stands for:
A: The Acronym “TILA” Stands For:
B: Title In Lending Act
C: Trust In Licensing Act
D: Truth In Lending Act

Answer 10

D: Truth In Lending Act

Question 11

Which federal law requires the lender to disclose the Annual Percentage Rate?
A: Equal Credit Opportunity Act (ECOA)
B: Real Estate Settlement And Procedures Act (RESPA)
C: Truth In Lending Act (TILA)
D: Sherman Anti-Trust Act

Answer 11

C: Truth In Lending Act (TILA)

Question 12

Another name for TILA is:
A: Regulation X
B: Regulation A
C: Regulation Z
D: Regulation H

Answer 12

C: Regulation Z

Question 13

What does RESP stand for?

Answer 13

Real Estate Settlement and Procedures Act

Question 14

RESPA

Answer 14

A consumer protection statute, passed in 1974
* The purpose of RESPA are:
* To help consumers become better shoppers for settlement services and
* To eliminate KICKBACKS and referral fees that unnecessarily increase the COSTS of certain settlement services.

Question 15

When does RESPA apply?

Answer 15

RESPA covers loans secured with a federally related mortgage placed on a one-to-four residential property, cooperative, or condominium. This includes equity lines
of credit when need as a part of a purchase.
Occupant type = ANY. Federally - related mortgage loans from lenders whose
deposits are insured by a federal agency. HUD and the CFPB (Consumer Financial Protection
Bureau) are responsible for enforcing RESPA.

Question 16

When does RESPA NOT apply?

Answer 16

Loans on large properties more than 25 acres.
Loans for business or agricultural purposes.
Construction loans or other temporary financing.
Vacant Land
Seller-Financed transactions
Assumable loans- such as FHA, EA loans and cash

Question 17

CFPB

Answer 17

• The CFPB stands for Consumer Financial Protection
  Bureau
• An entity created out of the Dodd-Frank Act
• Created to protect consumers by giving full disclosure and oversees all lending sources.

-Is the CFPB going after people? You Bet! They can face civil penalties for violatingconsumer financial protection laws.

Question 18

What does the acronym “RESPA” stand for?
A: Real Estate Settlement And Procedures Act
B: Real Estate Settlement And Proactive Act
C: Real Estate Settlement And Profiles Act
D: None Of The Above

Answer 18

A: Real Estate Settlement And Procedures Act

Question 19

The CFPB stands for:
A: Consumer Financial Protection Bureau
B: Consumer Finance Planned Bureau
C: Consumer Financial Protection Brokerage
D: None Of The Above

Answer 19

A: Consumer Financial Protection Bureau

Question 20

In what circumstances does RESPA not apply?
A: Vacant Land
B: Loans On Large Properties (25acres)
C: Commercial Properties
D: Both A & B

Answer 20

D: Both A & B

Question 21

Which entities are responsible for enforcing RESPA?
A: CFPB
B: HUD
C: Brokerage
D: Both A & B

Answer 21

D: Both A & B

Question 22

The purpose of CFPB is to:
A: Protect Consumers By Giving Full Disclosures
B: Oversee Lending Sources
C: Provide Agents With Responsibilities
D: Both A & B

Answer 22

D: Both A & B

Question 23

The piece of legislation that created TRID is called:
A: The Dodd/Frank Act
B: The Brokerage Act Of 1999
C: The Term Act
D: None Of The Above

Answer 23

A: The Dodd/Frank Act

Question 24

Settlement Services

Answer 24

are any service including any services provided in the connection with any real estate settlement.

Question 25

RESPA: Section 8 RESPA

Answer 25

-also prohibits certain practices that increase the cost of settlement services. -Section 8 of RESPA prohibits a person from giving or accepting any thing of value for referrals or settlement service business related to a formally related mortgage loan. -It also prohibits a person from giving or accepting any part of a charge for services that are not performed.

Question 26

Settlement Service Providers including, but not limited to:

Answer 26

Title Searches and title examinations The provisions of title certificates or title insurance. Services rendered by an attorney Preparation of documents

Question 27

More settlement service providers

Answer 27

Rendering of credit reports or appraisals Pest or fungus inspections or property surveys Home inspection companies Origination of a federally regulated mortgage Services rendered by a real estate broker or agent.

Question 28

What is NOT allowed

Answer 28

* Service providers cannot regularly take real estate agents to dinner. * Service providers cannot gift you for anything you use for your company. * Service providers cannot gift you with a meal and not attend it with you. * Service providers cannot gift you with tickets of fees for events and not attend it with you. * Disclosure - know the exact true terms about the loan they are getting

Question 29

What IS Allowed

Answer 29

- A loan officer may provide modest food at an open house if the are present during the open house and prominently display advertising that the food is sponsored by the mortgage company. - A real estate agent and a mortgage broker my jointly advertise AS LONG AS each of them pays exactly the portion of their percentage of the marketing.

Question 30

What is allowed

Answer 30

-A lender may pay FAIR MARKET RENT (only!) for a desk in the office of a real estate office. -A hazard insurance company may provide items such as company, may provide items such as notepads, pens and desk calendars which promote the -A title agent may pay for dinner where business is discussed, provided that such dinners are not a regular occurrence

Question 31

RESPA: Section 9

Answer 31

Section 9 of RESPA prohibits home sellers from requiring home buyers to purchase title insurance from a specific company. Buyer may sue the seller for such violation. The violator is liable for up to 3 times the amount paid for the title insurance.

Question 32

RESPA: Section 10 Section

Answer 32

10 prohibits the lender from requiring excessive escrow account deposits for items such as hazard insurance and property taxes. Audited yearly

Question 33

The ________ act was constructed to protect consumers regarding the cost of credit A: Truth In Lending Act B: Trust In Lending Act C: Truth In Lending Act II D: None Of The Above

Answer 33

A: Truth In Lending Act

Question 34

_____ is a 3 page document that consumers get with in three days of getting a mortgage loan A: Loan Estimate B: Buyer Estimate C: Loan Details Document D: All Of The Above

Answer 34

A: Loan Estimate

Question 35

The Loan Estimate must be given to the buyer: A: At Loan Application B: Within 3 Days Of Loan Application C: 3 Days Prior To Settlement D: At Closing

Answer 35

B: Within 3 Days Of Loan Application

Question 36

APR stands for: A: Annual Price Range B: Annual Price Recognition C: Change Of Loan Product D: Annual Percentage Rate

Answer 36

D: Annual Percentage Rate

Question 37

The acronym, RESPA stands for which of the following? A: Real Estate Settlement & Procedures Act B: Real Estate Settlement & Price Act C: Real Estate Statement & Procedures Act D: None Of The Above

Answer 37

A: Real Estate Settlement & Procedures Act

Question 38

What government entity is responsible for the enforcement of TRID? A: The CIA B: The FBI C: HUD D: The CFPB

Answer 38

D: The CFPB

Question 39

This section prohibits certain practices that increases the cost of settlement services A: RESPA Section 8 B: RESPA Section 7 C: RESPA Section 6 D: None Of The Above

Answer 39

A: RESPA Section 8

Question 40

TILA stands for: A: Truth In Lending Act B: Truth In Loan Act C: Trust In Loans Acts D: None Of The Above

Answer 40

A: Truth In Lending Act

Question 41

In section _____ of the RESPA, prohibits home sellers from requiring home buyers to purchase title insurance from a specific company A: 9 B: 10 C: 5.2 D: 2

Answer 41

A: 9

Question 42

RESPA, section ____ prohibits the lender from requiring excessive escrow account deposits for items such as hazard insurance and property taxes A: 10 B: 9 C: 6.2 D: 3

Answer 42

A: 10