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Real Estate > TRID 1 > Flashcards

TRID 1 Flashcards

1
Q

What does TRID stand for?

A
  • TILA/RESPA Integrated Disclosure
  • Truth in lending
  • RESPA
  • Integrated
  • Disclosure.
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2
Q

What does TILA stand for?

A

The Truth in Lending Act

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3
Q

Truth in Lending Act

A
  • 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
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4
Q

Loan Estimate

A

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

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5
Q

Trigger Terms Truth in lending In advertising a lender cannot say

A
  • Specific Interest rate
  • Down payment amounts
  • Monthly payment amount
  • Dollar amount of the finance charged
  • Term of loan
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6
Q

Trigger Terms Kickoff the Need For

A
  • Cash price
  • Required down payment
  • APR
  • Amount of all payments and due dates.
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7
Q

“APR” stands for

A

Annual Percentage Rate

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8
Q

Right of Rescission

A

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.

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9
Q

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

A

A: TILA/RESPA Integrated Disclosure

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10
Q

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

A

D: Truth In Lending Act

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11
Q

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

A

C: Truth In Lending Act (TILA)

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12
Q

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

A

C: Regulation Z

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13
Q

What does RESP stand for?

A

Real Estate Settlement and Procedures Act

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14
Q

RESPA

A

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.

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15
Q

When does RESPA apply?

A

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.

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16
Q

When does RESPA NOT apply?

A

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

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17
Q

CFPB

A
  • 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.

18
Q

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

A

A: Real Estate Settlement And Procedures Act

19
Q

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

A

A: Consumer Financial Protection Bureau

20
Q

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

A

D: Both A & B

21
Q

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

A

D: Both A & B

22
Q

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

A

D: Both A & B

23
Q

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

A

A: The Dodd/Frank Act

24
Q

Settlement Services

A

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

25
Q

RESPA: Section 8 RESPA

A

-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.

26
Q

Settlement Service Providers including, but not limited to:

A

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

27
Q

More settlement service providers

A

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.

28
Q

What is NOT allowed

A
  • 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
29
Q

What IS Allowed

A
  • 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.
30
Q

What is allowed

A

-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

31
Q

RESPA: Section 9

A

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.

32
Q

RESPA: Section 10 Section

A

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

33
Q

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

A

A: Truth In Lending Act

34
Q

_____ 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

A

A: Loan Estimate

35
Q

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

A

B: Within 3 Days Of Loan Application

36
Q

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

A

D: Annual Percentage Rate

37
Q

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

A

A: Real Estate Settlement & Procedures Act

38
Q

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

A

D: The CFPB

39
Q

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

A

A: RESPA Section 8

40
Q

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

A

A: Truth In Lending Act

41
Q

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

A

A: 9

42
Q

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

A

A: 10

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