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20 Cards in this Set
- Front
- Back
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What does RESPA stand for? |
Real Estate Settlement Procedures Act |
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What is the purpose of RESPA? |
Protect consumers by regulating costs and business arrangement disclosures. |
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What does RESPA ensure? |
That consumers will obtain info on prearranged business agreements, the cost of closing loans and be protected from excessive settlement costs and unearned fees. |
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Who oversees and enforces RESPA? |
CFPB ( consumer financial protection bureau) |
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Under RESPA, what is the initial disclosure of the estimated costs of a mortgage loan, expressed in dollar amounts. |
GFE ( Good Faith Estimate) |
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When must the GFE be disclosed? |
No later than 3 days of a loan app |
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The estimated charges and terms must be available for at least how many days from when the GFE is provided? |
10 Days |
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What settlement statements are provided that clearly shows all the final charges in connection with the settlement of the loan? Hint: Compared to the GFE |
HUD 1 / HUD 1A |
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Which settlement statement is used for refinancing transactions? |
HUD 1A |
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Which settlement is typically used for only purchase transactions? |
HUD 1 |
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When must the HUD 1/1A be provided to the cosumer? |
At closing |
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How soon may the uniform settlement statements ( HUD) be requested by the borrower? |
1 day prior to closing |
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When should the 'Special info Booklet" be provided to the consumer? |
Within 3 business days of the app for a purchase trans. |
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What is the Settlement Cost Booklet also known as? |
Special Information Booklet |
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It explains the settlement process and advises borrowers they have the right to negotiate terms and reviews the protections of RESPA? |
The Special Information booklet |
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When must the ABA disclosure be given to the consumer? |
Anytime a lender has recommended an affiliated business for settlement services./Within 3 days if mailed |
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Lenders must provide applicants with a list of homeownership counseling organizations within how many days of the app? |
3 business days |
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All GFE's must be documented with reasons for revisions and retained for how long? |
3 years |
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The HUD-1 (1A)/, ABA and the MSDS must be retained for how long? |
5 years |
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All documentation related to actions taken on loans amounts must be kept by servicer for how long after discharge or transfer? |
1 year |
