NMLS Exam Study Guide: RESPA Exam Questions with Correct Answers

NMLS Exam Study Guide: RESPA Exam Questions with Correct Answers True (Promotional items with the company logo are permitted to be given) - Answer-True or False: Promotional items with the company logo are permitted to be given. Regulation X - Answer-What regulation is RESPA? RESPA (Regulation X) - Answer-Primarily involved with the disclosure of closing costs and the prevention of kickbacks, which may raise the closing costs to the consumer: Consumer Financial Protection Bureau - Answer-Enforces the RESPA regulations. HUD was the previous enforcer. False (RESPA does NOT apply to loans secured by commercial properties) - Answer-True or False: RESPA applies to loans secured by commercial properties. Vacant Land - Answer-RESPA does not apply to __________ (unless a dwelling is intended to be constructed on the land within two years): 25 or more acres - Answer-RESPA does not apply to properties containing __________ or more acres: True - Answer-True or False: RESPA does not apply to temporary financing, such as bridge loans and construction loans. Section 6 - Answer-Which section of RESPA deals with the mortgage servicer and the mortgage servicing abuses? 37 days, and 30 days - Answer-According to RESPA Section 6, if the servicer receives the loss mitigation application __________ days before a foreclosure sale, the borrower's situation must be evaluated for all applicable options (modification, short sale, etc, within __________ days. 90 Days (A foreclosure sale is delayed until a loan modification is denied, appealed, or canceled due to nonperformance) - Answer-The borrower may appeal a decision if the complete application package was submitted at least __________ days before a scheduled foreclosure sale Section 8 - Answer-Which section of RESPA prohibits kickbacks, fee splitting, and unearned fees? Kickbacks - Answer-Illegal referring fees are known as: Thing of Value - Answer-RESPA Section 8 prohibits giving or accepting a __________ in exchange for the referral of settlement services. True - Answer-True or False: RESPA does NOT prohibit payment of fair market value for goods or services that were actually received or performed. Section 9 - Answer-Which section of RESPA prohibits the seller from requiring the buyer to use a particular title company AS A CONDITION OF THE SALE? 3x the amount paid for the service (Also known as "Treble Damages") - Answer-If RESPA Section 9 is violated, the seller could be sued for __________ the amount paid for the service