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16 Cards in this Set
- Front
- Back
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When did RESPA go into effect? |
June 20, 1975 |
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Who enforces RESPA? |
CFPB (Consumer Financial Protection Bureau) |
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What is the intent of RESPA? |
To assist consumers in shopping for settlement services on residential mortgage transactions and to prevent unnecessary increases in those costs. |
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When is the HUD1 Settlement Statement to be given to the borrower? |
On the day of closing, or one day prior to closing if requested in advance by the borrower. |
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What is on the HUD1 Settlement Statement? |
Every dollar being charged, who's charging it, and who's paying it. |
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What are the 8 disclosures required under RESPA? |
1) GFE 2) HUD1 Settlement Statement 3) The HUD Settlement Costs booklet 4) Mortgage Servicing Disclosure Statement 5) The Affiliated Business Arrangement Disclosure (ABA) 6) Initial Escrow Statement 7) Annual Escrow Statement 8) Servicing Transfer Statement |
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When must the borrower receive the ABA Disclosure? |
At the time, or before a referral to an affiliated business is given. |
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When must the borrower receive the HUD Settlement Costs Booklet? |
Within 3 business days of the application |
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When must the Mortgage Servicing Disclosure Statement be given? |
Within 3 business days of the application. |
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What does Section 8 of RESPA state? |
Any person who gives or receives a fee or a thing of value for the referral of settlement business is in violation. |
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What are the potential consequences of violating Section 8 of RESPA? |
- Up to $10,000 fine - Up to one year in prison - OR both - May be liable for up to 3 times the amount that was paid |
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What does Section 9 of RESPA state? |
Sellers who hold legal title to the property being sold are prohibited from requiring borrowers to use a particular title company. |
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What are the potential consequences of violating Section 9 of RESPA? |
- Could be required to pay a civil violation in an amount equal to 3 times all charges made for such title insurance |
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What does Section 10 of RESPA limit? |
How much can be collected for escrow accounts. |
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How much may a servicer collect each month for escrow? |
An amount equal to 1/12 of the annual taxes and/or insurance. The lender may collect a cushion at closing not to exceed two months of the annual taxes or insurance |
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Who enforced RESPA prior to the CFPB? |
The US Department on Urban Housing and Development (HUD) |
