RMLO Exam Study Guide - Complete With Solutions
RESPA includes what regulation Right Ans - REG X
RESPA Right Ans - Real Estate Settlement Procedures Act - requires special
information booklet, requires good faith estimate, requires uniform
settlement statement
RESPA Right Ans - Enforced by CFPB
RESPA Covers Right Ans - -applies to- federally related mortgages either
existing or to be placed on the real property, using loan proceeds. (1-4 family,
TH, condo, manufactured homes for purchase/refinance)
RESPA Exempts Right Ans - exempts- 25 acres or more,
business/commercial/agricultural use, temporary loans (<2yrs & not
converting to permanent terms with same bank), vacant lot where none of
loan will be used to build, assumptions of loans, conversion of existing loan
where no new note Is requires
RESPA Section 6 Right Ans - -Section 6 - requires the servicer to
acknowledge the receipt of a consumer complaint in writing within 20
business days of receipt. Within 60 business days thereafter, the servicer must
resolve the complaint, either by taking action to address the issues raised in
the complaint or giving the reasons for its refusal to do so
RESPA Section 8 Right Ans - Section 8-no kickbacks/referrals/unearned
fees of anything of value (have to do 7/13 things to get RMLO compensation)
RESPA Section 9 Title Insurance Rules Right Ans - *Prohibits seller from
requiring the home buyer to use a particular title insurance company, either
directly or indirectly, as a condition of sale
*Buyers can sue for 3 times charges for the title insur.
RESPA Section 10 Escrow Account Limits Right Ans - escrow account
analysis required initially and annually. Only collect 1/12 month at a time and
only retain up to 1/6 yr cushion. If >$50 over allowance, must refund
,RESPA Notice of Transfer of Loan Servicing Right Ans - - new and old
servicer must inform borrower 15 days before effective date when loan
servicing is sold/assigned/transferred, and old company must accept
payments 60 days after effective date
RESPA Force-Placed Insurance Right Ans - - servicer must mail or deliver
an initial written notice to the borrower at least 45 days before assessing a
charge or fee related to force-placed insurance. Must send a reminder notice
at least 30 days after the initial notice is mailed or delivered and at least 15
days before the servicer assesses charges or fees.
RESPA:
Business day for RESPA: Right Ans - RESPA:
Business day for RESPA:
Any day an institution is open to the public for substantially all functions.
-RESPA Business Days- General Business Days - Monday-Friday (no holidays,
Saturdays or Sundays)
RESPA Disclosures- 3 General Day of Application received Right Ans -
Within 3 General Business Days of Application received (unless app is denied
before the 3 days are up)-
• Special information Booklet- "Your Loan Tool Kit"- only for purchase not
refinance. Can be printed in any font, language, color and with pictures-but
can't be made part of larger document
• GFE- Used for Reverse Mortgages.
• Mortgage Servicing Disclosure Statement- loan servicing may be
assigned/sold/transferred and this loan is covered under RESPA
RESPA Disclosures At or Prior Time of Referral Right Ans - Affiliated
Business Arrangement (ABA) - Controlled Business Arrangement(CBA)
- 1% ownership or greater and can only get profits from that company based
off of interest in ownership. Must disclose relationship/ownership in
company and estimated charges. Cannot require use.
• Required providers- must disclose at time of application if required
RESPA Disclosures due at closing Right Ans - HUD-1/HUD-1A(Uniform
Settlement Statement-UST)- (used only for certain loans - see GFE above)
must be provided 24 hrs in advance if requested.
, Must give copies to borrower, seller and lender (only borrower may waive in
writing).
Lender/servicer must keep HUD on file for 5 yrs *look at HUD and compare
GFE
RESPA Section 8 Penalties Right Ans - Section 8- civil- 3x referral
fee/Kickback, criminal-$10k /1 yr in jail
RESPA Section Penalties Right Ans - Section 9- 3x title fee
RESPA Section 10 Penalties Right Ans - Section 10- $50 for each occurrence
in past 12 months, not to be greater than $100k, if intentional $100 for each
occurrence and no limit
Prepayment Penalty Documents Right Ans - *The Hud-1, TIL, GFE,
promissory note, LE and CD are the 6 documents that show whether you have
a prepayment penalty
TILA Right Ans - Truth in Lending Act (TILA) - Title 1 of Consumer Credit
Protection Act (CCPA)
TILA Regulations Right Ans - REG Z
TILA Right Ans - CFPB oversees and enforces
TILA enables Right Ans - customer to compare cash vs cost of credit
TILA APR includes Right Ans - Includes all lender costs of credit (interest
rate, all lender fees, discount points, mortgage insurance costs, tax life of
certification)
• Excludes non-lender costs( appraisal, attorney, title insurance, settlement
costs, HOA dues, homeowners insurance, taxes, inspections, seller paid buyer
closing costs)
• Final APR for a "Regular Transaction" must be within 1/8 of a percent
(0.125%) of final settlement statement.
• Final APR for a "Irregular Transaction" must be within 1/4 of a percent
(0.250%) of final settlement statement
RESPA includes what regulation Right Ans - REG X
RESPA Right Ans - Real Estate Settlement Procedures Act - requires special
information booklet, requires good faith estimate, requires uniform
settlement statement
RESPA Right Ans - Enforced by CFPB
RESPA Covers Right Ans - -applies to- federally related mortgages either
existing or to be placed on the real property, using loan proceeds. (1-4 family,
TH, condo, manufactured homes for purchase/refinance)
RESPA Exempts Right Ans - exempts- 25 acres or more,
business/commercial/agricultural use, temporary loans (<2yrs & not
converting to permanent terms with same bank), vacant lot where none of
loan will be used to build, assumptions of loans, conversion of existing loan
where no new note Is requires
RESPA Section 6 Right Ans - -Section 6 - requires the servicer to
acknowledge the receipt of a consumer complaint in writing within 20
business days of receipt. Within 60 business days thereafter, the servicer must
resolve the complaint, either by taking action to address the issues raised in
the complaint or giving the reasons for its refusal to do so
RESPA Section 8 Right Ans - Section 8-no kickbacks/referrals/unearned
fees of anything of value (have to do 7/13 things to get RMLO compensation)
RESPA Section 9 Title Insurance Rules Right Ans - *Prohibits seller from
requiring the home buyer to use a particular title insurance company, either
directly or indirectly, as a condition of sale
*Buyers can sue for 3 times charges for the title insur.
RESPA Section 10 Escrow Account Limits Right Ans - escrow account
analysis required initially and annually. Only collect 1/12 month at a time and
only retain up to 1/6 yr cushion. If >$50 over allowance, must refund
,RESPA Notice of Transfer of Loan Servicing Right Ans - - new and old
servicer must inform borrower 15 days before effective date when loan
servicing is sold/assigned/transferred, and old company must accept
payments 60 days after effective date
RESPA Force-Placed Insurance Right Ans - - servicer must mail or deliver
an initial written notice to the borrower at least 45 days before assessing a
charge or fee related to force-placed insurance. Must send a reminder notice
at least 30 days after the initial notice is mailed or delivered and at least 15
days before the servicer assesses charges or fees.
RESPA:
Business day for RESPA: Right Ans - RESPA:
Business day for RESPA:
Any day an institution is open to the public for substantially all functions.
-RESPA Business Days- General Business Days - Monday-Friday (no holidays,
Saturdays or Sundays)
RESPA Disclosures- 3 General Day of Application received Right Ans -
Within 3 General Business Days of Application received (unless app is denied
before the 3 days are up)-
• Special information Booklet- "Your Loan Tool Kit"- only for purchase not
refinance. Can be printed in any font, language, color and with pictures-but
can't be made part of larger document
• GFE- Used for Reverse Mortgages.
• Mortgage Servicing Disclosure Statement- loan servicing may be
assigned/sold/transferred and this loan is covered under RESPA
RESPA Disclosures At or Prior Time of Referral Right Ans - Affiliated
Business Arrangement (ABA) - Controlled Business Arrangement(CBA)
- 1% ownership or greater and can only get profits from that company based
off of interest in ownership. Must disclose relationship/ownership in
company and estimated charges. Cannot require use.
• Required providers- must disclose at time of application if required
RESPA Disclosures due at closing Right Ans - HUD-1/HUD-1A(Uniform
Settlement Statement-UST)- (used only for certain loans - see GFE above)
must be provided 24 hrs in advance if requested.
, Must give copies to borrower, seller and lender (only borrower may waive in
writing).
Lender/servicer must keep HUD on file for 5 yrs *look at HUD and compare
GFE
RESPA Section 8 Penalties Right Ans - Section 8- civil- 3x referral
fee/Kickback, criminal-$10k /1 yr in jail
RESPA Section Penalties Right Ans - Section 9- 3x title fee
RESPA Section 10 Penalties Right Ans - Section 10- $50 for each occurrence
in past 12 months, not to be greater than $100k, if intentional $100 for each
occurrence and no limit
Prepayment Penalty Documents Right Ans - *The Hud-1, TIL, GFE,
promissory note, LE and CD are the 6 documents that show whether you have
a prepayment penalty
TILA Right Ans - Truth in Lending Act (TILA) - Title 1 of Consumer Credit
Protection Act (CCPA)
TILA Regulations Right Ans - REG Z
TILA Right Ans - CFPB oversees and enforces
TILA enables Right Ans - customer to compare cash vs cost of credit
TILA APR includes Right Ans - Includes all lender costs of credit (interest
rate, all lender fees, discount points, mortgage insurance costs, tax life of
certification)
• Excludes non-lender costs( appraisal, attorney, title insurance, settlement
costs, HOA dues, homeowners insurance, taxes, inspections, seller paid buyer
closing costs)
• Final APR for a "Regular Transaction" must be within 1/8 of a percent
(0.125%) of final settlement statement.
• Final APR for a "Irregular Transaction" must be within 1/4 of a percent
(0.250%) of final settlement statement
