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26 Cards in this Set
- Front
- Back
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Fees that cannot increase at the time of settlement (listed on GFE)
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-Origination charge
-Charges for locking an interest rate, while the rate is locked -The adjusted origination charge, while the rate is locked -Transfer taxes |
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Fess that cannot increase by more than 10% at the time of settlement (listed on GFE)
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-Settlement services, when the lender chooses the service provider
-Lender required services, title services, and title services when the borrower uses a provider identified by the originator -Government recording charges |
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Fees that can change on a GFE at the time of Settlement
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-Required services that a borrower can shop for
-Title services and lender's title insurance -Owner's title insurance -Initial deposit for the borrower's escrow account -Daily interest charges -Homeowners insurance |
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If a LO charges a borrower an amount that wrongfully exceeds the amount on the GFE, what do they do?
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-They have 30 days to cure the excess charge by reimbursing the excess amount to the borrower.
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If a LO gives a revised GFE, they must
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-Document the reasons for any changes
-Retain the documents about the revision for at least 3 years after settlement |
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What are the "changed circumstances," in which a revised GFE can be issued?
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-Acts of God, war, disaster, or other emergency
-Information relied on that was used to provide the GFE is inaccurate (e.g. info about borrower's credit, amount of the loan, estimated value of property) -New information particular to the borrower that was no relied on in providing the GFE -Other circumstances particular to the borrower/transaction incudling boundary disputes, need for flood insurance, or environmental problems. |
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When must a revised GFE be given?
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within 3 business days of the LO becoming aware of the new information
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Settlement Cost Booklet Due Date
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3 business days
Only has to be given to one borrower (any one of them) |
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Purpose of Settlement Cost Booklet
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-Explains the settlement process
-Tells borrower they have the rights to negotiate terms of a loan -Reviews the protections offered by RESPA -Warns borrowers that giving false info on a loan app can lead to loss of home, poor credit rating, and even criminal prosecution if found for fraud |
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Booklet given to borrowers shopping for open line of credit
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"When your home is on the line: What you should knw about Home Equity Line of Credit"
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Mortgage Servicing Disclosure Statement Due Date
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3 Business Days after application
Only for first-lien mortgages |
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Mortgage Servicing Disclosure Statement contents
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Whether the the loan servicing can be sold, assigned, trasnferred. Must include
-Applicant's acknowledgement (all signatures) that they received the disclosure -Say they will be, (or there is a possibility) that they will sell the rights to service the loan -Statement for table funders hasn't serviced one in past 3 years, or for other linders the percent they did in last 3 years -Borrowers rights with regards to complaint resolution |
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Form/format for servicing disclosure statement
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Found in Appendix of Regulation X
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The HUD-1 Purpose...
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-The actual costs of the settlement.
-"Settlement Statement" |
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HUD-1 Due
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-At the time of closing
-Or borrower can request 1 business day prior |
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HUD-1A is..
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Settlement statement for transactions not involving a seller
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HUD-1 must include
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The actually final dollar amount for the costs associated with settlement.
(The GFE is just an ESTIMATE. Both forms have corresponding numbered fields for comparison) |
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Section 10 of RESPA includes (disclosures/statements)..
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-Initial Escrow Statement
-Annual Escrow Statement |
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Initial Escrow Statement due date
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45 days after the account has been set up
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Other requirements by Section 10 of RESPA
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TO prevent overcharging for escrows...
-Annual escrow account analysis -Limiting a cushion a borrower must maintain to 1/6 of total annual disbursement -Generally, refund any surplus over $50 within 30 days after analysis reveals a surplus |
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Servicing Disclosure Statement is covered under?
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Section 6 of RESPA
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Servicing Disclosure's Purpose?
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-Provide notice of transfer of servicing of a loan
-Provide protocol for any customer complaints with the servicer |
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Servicing Disclosure due date?
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-15 days prior to the transfer
-New servicer must also provide disclosure within 15 days after transfer -Cannot assess late fees for 60 days after transfer |
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How long must lenders retain RESPA disclosures?
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5 years
-Mortgage Servicing Disclosure statement -HUD1/1A -Affiliated Business Arrangement DIsclosures |
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What section of RESPA lists prohibited lender practice?
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Section 8
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Things prohibited by RESPA in Section 8
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-Exchange of things of value for business referrals
-Fee splitting -Unreasonable charges -Illegal "agreement or understanding" |
