All of the following are required by the real Estate Settlement Procedures Act EXCEPT

Updated March 30, 2018

Download Real Estate Settlement Procedures Act (RESPA) examination procedures | PDF

The TILA and RESPA examination procedures have been updated to reflect amendments to Regulations X and Z. Specifically, the updates reflect the Amendments Relating to Small Creditors and Rural or Underserved Areas under TILA (Rural-Small Rule), the Amendments to the 2013 Mortgage Rules under RESPA (Regulation X) and TILA (Regulation Z) (the 2016 Servicing Rule) final rules, and the October 2017 Mortgage Servicing interim final rule. The updates also include corrections and clarifications to existing text.

Summary 

The Real Estate Settlement Procedures Act (RESPA) is applicable to all “federally related mortgage loans,” except as provided under 12 CFR 1024.5(b) and 1024.5(d), discussed below. “Federally related mortgage loans” are defined as:

Loans (other than temporary loans), including refinancings that satisfy the following two criteria:

First, the loan is secured by a first or subordinate lien on residential real property, located within a State, upon which either:

• A one-to-four family structure is located or is to be constructed using proceeds of the loan (including individual units of condominiums and cooperatives)
  
• A manufactured home is located or is to be constructed using proceeds of the loan

Second, the loan falls within one of the following categories:

• Loans made by a lender, creditor, dealer
  
• Loans made or insured by an agency of the federal government
  
• Loans made in connection with a housing or urban development program administered by an agency of the federal government
  
• Loans made and intended to be sold by the originating lender or creditor to FNMA, GNMA, or FHLMC (or its successor)
  
• Loans that are the subject of a home equity conversion mortgage or reverse mortgage issued by a lender or creditor subject to the regulation 
  

“Federally related mortgage loans” are also defined to include installment sales contracts, land contracts, or contracts for deeds on otherwise qualifying residential property if the contract is funded in whole or in part by proceeds of a loan made by a lender, specified federal agency, dealer or creditor subject to the regulation. 

1. At the closing, the seller's attorney informed him that he would be giving credit to the buyer for certain accrued items.  These items represent

   Bills related to the real estate that have not been

2. The Real Estate Settlement Procedures Act (RESPA)
   applies to the activities of

   Lenders financing the purchase of the borrower's residence

3. The details of a sales transaction are ALWAYS governed by the

   terms of the properly executed purchase contract

4. At the closing, the real estate broker's commission generally appears as a

   A debit to the seller

5. The consdition of the seller's title is generally determined from a

   Title commitment or title insurance policy

6. RESPA provides that

   The residential borrow has a right to receive an estimate of available closing costs before the closing.

7. The accrued interest on an assumed morgage loan is entered on the closing statement as a

   Debit to the seller and credit to the buyer

8. As provided in a valid purchase contract, the real estate transaction must be closed.  The means all of the following:

   • The seller must clear the title so that the condition of the title complies with the terms of the contract
   • The purchaser must pay the purchase price to the seller
   • The seller must deliver the deed to the purchaser
   • NOT The broker must attend the closing to receive any commission

9. The process by which expenses are handled at the settlement of a real estate transaction so that oth the buyer and the seller pay their respective portions of the debts is called

   Proration

10. The Real Estate Settlement Procedures Act RESPA may apply to a loan assumption if the

    Terms of the assumed loan are modified by the lender

11. The principla balance on an assumed mortgage loan is entered on the closing statement as a

    • Debit to the seller and a credit to the seller
    • From the seller to the buyer--the seller has the pay-off and the buyer takes on the payment(assuming)

12. The Real Estate Settlement Procedures ACT (RESPA) is a regulation of the

    Federal Gov't

13. Which of the following items are ususally prorate between the buyer and thw seller at closing

    • Real Estate taxes
    • Rents
    • Utility Bills
    • NOT Recording Charges

14. The closing statement involves debits and credits to the parties in the transaction.  A debit is

    An expense

15. In a closing statement, an accrued item is

    An item that is unpaid but is due

16. The Real Estate Settlement Procedures Act requires

    That disclosure be made of all closing costs prior to closing

17. All of the following are required by RESPA

    • Lenders must provide borrowers with a good faith estimate of closing costs
    • A uniform settlement form must be used at loan closings
    • No kickbacks may be paid to any party in connection with a loan transaction
    • NOT--the borrower may cancel the loan transaction within 5 days after settlement.

18. An example of a kickback prohibited by RESPA si an

    fee paid by a surveyor to a broker for a lead on a property surveyed

19. Services offered by affilaiated business arrangements are permitted under RESPA as long as certain condtions are met

    • The broker may charge whatever fee the broker determines is fair for the service
    • The Borrower must pay whatever fees are charged for the service
    • The broker is required to disclose the existence of other services and products thta are not part of the affiliated business agreement
    • NOT--the morgage broker may pay a referral fee for the mortgage loan

What is the primary purpose of the settlement statement quizlet?

Which of these is not an element of an option to purchase real estate quizlet?

Which would not be prorated at closing?

Is a federal law that requires lenders to give borrowers a pamphlet?