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41 Cards in this Set
- Front
- Back
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What are the main issues included in RESPA?
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SHREG, Settlement Cost Book, YSP, and ABA
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What are the 8 main disclosures required by RESPA?
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1. GFE
2. MSDS 3. Servicing Transfer Statement 4. HUD-1 5. Initial Escrow Statement 6. ABA Disclosure 7. Settlement Cost Booklet 8. Annual Escrow Statement |
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What are the 2 purposes of RESPA
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To protect the consumer from fees and allow customers to shop around
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What agency regulates RESPA
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HUD
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What 7 loans are excluded from RESPA?
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1. 25 + acres
2. Commercial loans 3. Vacant > 2 years after settlment 4. Temporary loans 5. Agricultural loans 6. Loan modifications 7. Assumptions |
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What are settlement services?
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Any services provided in connection with the closing of a real estate transaction.
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How can you tell a ABA from a sham ABA?
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A sham ABA can be seen b.c they receive money on a per transaction basis instead of a percentage of ownership.
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What are the 4 different sections and what they cover?
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Section 6 - Servicing
Section 8 - Referrals Section 9 - Seller can't require a title insurer Section 10 - Escrow |
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What 6 things are needed for an application?
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1. Borrower Name
2. Borrower SSN 3. Borrower Income 4. Address 5. Value of the Property 6. Loan Amount |
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What is the only fee that can be charged before the GFE?
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The CBR fee
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What 4 important dates are included in the GFE?
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1. How long the % is good for
2. How long are other fees good for (at least 10 days) 3. What is the rate lock period (if locked) 4. What is the minimum # of days before settlment that the rate needs to be locked? (if not locked) |
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What 10 loans terms are disclosed in the GFE?
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1. The Loan Amount
2. The Term 3. The interest rate 4. The Principle, Interest, and Mortgage Insurance 5. Adjustible rate (initial and max cap) 6. Negative amortization (cap) 7. Increasing payment (max payment and when it can go up) 8. Prepayment Penalty 9. Baloon (huw much and when) 10. Impounds (escrows) |
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What 4 types of charges are on the GFE?
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1. Lender Charges
2. Closing/Title Charges 3. Government Charges 4. Pre-Paid Charges |
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What are lender charges?
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1. Origination charges (all lender fees)
2. Appraisals 3. CBR 4. Inspections |
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What are closing/title charges?
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1. Closing(attorney)/Escrow(title service) charges
2. Notary 3. Lender's Title Insurance |
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What are Government Charges?
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1. Transfer taxes
2. Recording Fees |
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What are Pre-Paid charges?
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1. Property Tax
2. Insruance 3. Interest (paid in arrears) |
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What are the 3 buckets included in the GFE?
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1. No increase allowed
2. 10% increase allowed 3. Any increase allowed |
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What are the 4 charges that cannot change from the GFE?
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1. Origination charge
2. Charge for locking the interest rate 3. The Adjusted origination charge (1+2) 4. The transfer taxes |
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What 3 things can increase by 10% on the GFE?
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1. Settlement services REQUIRED by us
2. Lender required services, title services, & title insurance recommended by us 3. Government recording fees |
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When can we issue a new GFE?
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If we are given new information
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What are the 3 things to remember about the Settlement cost booklet?
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1. It is due 3 days after app
2. It is onl for purchases 3. It must be sent alone |
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What 3 things should be remembered about the MSDS?
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1. It is only for 1st lien mortgages
2. It is due 3 days after app 3. It tells how likely it is to be transfered |
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What 4 things should be remembered about the ABA disclosure?
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1. It is due at time of referral or 3 days from phone talk
2. Disclose percent ownership 3. Estimate cost of using them 4. Don't need to use |
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What 3 things are important with the settlment statement?
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1. It is due at settlment
2. It can be requiested 1 day prior 3. It included ACTUAL settlement costs. |
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What 2 things do we need to know about the Initial Escrow Statement?
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1. It is due 45 days from escrow establishment
2. It estimates the account activity over the next 12 months |
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What 2 things should be known about the annual escrow statement?
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1. Required annually
2. It includes the previous years history and a 12 month preview |
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What is the RESPA retention period?
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5 years
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What is the penalty for violating section 8 of RESPA?
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1. 10,000 and up to 1 year in jail
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What is RESPA also known as?
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Regulation X
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What are the due dates for the various RESPA disclosures?
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1. GFE - 3 of app
2. MSDS - 3 of app 3. Settlement cost booklet - 3 of app 4. Servicing Transfer statement - 15/15 5. Initial Escrow Statement - 45 of establishment 6. Annual Escrow statement - annually 7. ABA Disclosure - at referral or 3 days of phone 8. HUD-1 - At Settlement |
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When must the borrower accept the GFE by?
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10 days after receiving it
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What 5 GFE charges CAN change?`
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1. Title service and lenders title insurance if borrower choices
2. Owners title insurance if they select 3. Initial deposit for the borrower's escrow account 4. Daily interest 5. Homeowner's insurance |
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When is the Settlement Cost Booklet required?
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Any time there is a purchase loan
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What 3 documents should be kept and how long?
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5 years
1. MSDS 2. HUD-1 3. ABA Disclosure |
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What is the penalty for violating section 6?
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1. Individual actions - Servicer is liable for damages
2. Class action - 1,000 for each member not to exceed 500,000 or 1% |
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What is covered under section 9?
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Seller can't require buyer use a title company
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What is the penalty for vilations of section 9?
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buyer can sue for 3 times the amount charged for title insurance.
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What is the cushion for escrow?
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2 months
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When does a refund need to be sent under section 10
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$50 over 2 month cushion
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What is the penalty for violations of section 10?
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1. Initial/Annual Statement - $75/violation up to 130,000 for 12 months
2. Intentional Violation - $110/violation with no limitation |
