California RESPA, TILA, and TRID exam
2026 questions and rationales answers
1. What is the primary purpose of the Real Estate Settlement Procedures Act (RESPA)?
A. To regulate property taxes
B. To regulate real estate appraisers
C. To promote transparency in residential settlement costs and prohibit certain abusive
practices
D. To establish zoning requirements
RESPA is a federal consumer-protection law designed to provide settlement-cost information and
prohibit practices such as kickbacks and unearned fees.
2. RESPA generally applies to which type of transaction?
A. Commercial office buildings
B. Vacant agricultural land
C. Federally related residential mortgage loans
D. Personal property sales
RESPA generally applies to federally related mortgage loans secured by residential real estate.
3. Which practice is generally prohibited by Section 8 of RESPA?
A. Charging interest on a mortgage
B. Giving or accepting a kickback for a settlement service referral
C. Collecting property taxes
D. Charging a legitimate loan origination fee
RESPA Section 8 prohibits kickbacks and referral fees involving settlement services.
4. A title company gives a real estate broker a fee solely for referring clients to the title
company. Under RESPA, this is generally:
A. Required
B. Acceptable if disclosed
,C. Prohibited
D. Required only in California
A fee paid solely for a settlement-service referral can constitute a prohibited RESPA kickback.
5. Which federal agency currently administers and enforces most consumer mortgage
regulations, including RESPA and TILA?
A. IRS
B. FHA
C. Consumer Financial Protection Bureau (CFPB)
D. Federal Reserve Bank of California
The CFPB has primary federal authority for many consumer financial protection regulations,
including implementing regulations for RESPA and TILA.
6. RESPA Section 9 generally prohibits a seller from requiring a buyer to:
A. Obtain homeowners insurance
B. Use an escrow account
C. Use a particular title insurance company as a condition of the sale
D. Obtain a mortgage
RESPA Section 9 generally prohibits sellers from requiring purchasers to buy title insurance from
a particular company.
7. Which transaction is most likely covered by RESPA?
A. Purchase of a warehouse by a corporation
B. Purchase of a one-to-four-family residential property using a federally related mortgage
loan
C. Sale of a vacant commercial lot
D. Purchase of business equipment
RESPA primarily addresses covered residential mortgage transactions rather than ordinary
commercial transactions.
8. Under RESPA, a settlement service provider generally may not:
, A. Charge a legitimate fee
B. Provide a written estimate
C. Pay another person for a referral of settlement services
D. Collect a loan application fee
RESPA prohibits giving or receiving something of value for settlement-service referrals, subject to
specific statutory exceptions.
9. Which is an example of a settlement service under RESPA?
A. Landscaping
B. Furniture delivery
C. Title insurance
D. Home cleaning
Title services are among the settlement services regulated by RESPA.
10. RESPA is primarily concerned with protecting:
A. Commercial landlords
B. Real estate licensees
C. Consumers in covered residential settlement transactions
D. Construction contractors
RESPA is a federal consumer-protection statute focused on residential mortgage settlement
practices.
11. What does a Loan Estimate generally provide to a borrower?
A. A guaranteed interest rate for every loan
B. Estimated loan terms, projected payments, and closing costs
C. The property's appraised value
D. The seller's net proceeds
The Loan Estimate gives the consumer important information about the proposed mortgage and
estimated closing costs.
2026 questions and rationales answers
1. What is the primary purpose of the Real Estate Settlement Procedures Act (RESPA)?
A. To regulate property taxes
B. To regulate real estate appraisers
C. To promote transparency in residential settlement costs and prohibit certain abusive
practices
D. To establish zoning requirements
RESPA is a federal consumer-protection law designed to provide settlement-cost information and
prohibit practices such as kickbacks and unearned fees.
2. RESPA generally applies to which type of transaction?
A. Commercial office buildings
B. Vacant agricultural land
C. Federally related residential mortgage loans
D. Personal property sales
RESPA generally applies to federally related mortgage loans secured by residential real estate.
3. Which practice is generally prohibited by Section 8 of RESPA?
A. Charging interest on a mortgage
B. Giving or accepting a kickback for a settlement service referral
C. Collecting property taxes
D. Charging a legitimate loan origination fee
RESPA Section 8 prohibits kickbacks and referral fees involving settlement services.
4. A title company gives a real estate broker a fee solely for referring clients to the title
company. Under RESPA, this is generally:
A. Required
B. Acceptable if disclosed
,C. Prohibited
D. Required only in California
A fee paid solely for a settlement-service referral can constitute a prohibited RESPA kickback.
5. Which federal agency currently administers and enforces most consumer mortgage
regulations, including RESPA and TILA?
A. IRS
B. FHA
C. Consumer Financial Protection Bureau (CFPB)
D. Federal Reserve Bank of California
The CFPB has primary federal authority for many consumer financial protection regulations,
including implementing regulations for RESPA and TILA.
6. RESPA Section 9 generally prohibits a seller from requiring a buyer to:
A. Obtain homeowners insurance
B. Use an escrow account
C. Use a particular title insurance company as a condition of the sale
D. Obtain a mortgage
RESPA Section 9 generally prohibits sellers from requiring purchasers to buy title insurance from
a particular company.
7. Which transaction is most likely covered by RESPA?
A. Purchase of a warehouse by a corporation
B. Purchase of a one-to-four-family residential property using a federally related mortgage
loan
C. Sale of a vacant commercial lot
D. Purchase of business equipment
RESPA primarily addresses covered residential mortgage transactions rather than ordinary
commercial transactions.
8. Under RESPA, a settlement service provider generally may not:
, A. Charge a legitimate fee
B. Provide a written estimate
C. Pay another person for a referral of settlement services
D. Collect a loan application fee
RESPA prohibits giving or receiving something of value for settlement-service referrals, subject to
specific statutory exceptions.
9. Which is an example of a settlement service under RESPA?
A. Landscaping
B. Furniture delivery
C. Title insurance
D. Home cleaning
Title services are among the settlement services regulated by RESPA.
10. RESPA is primarily concerned with protecting:
A. Commercial landlords
B. Real estate licensees
C. Consumers in covered residential settlement transactions
D. Construction contractors
RESPA is a federal consumer-protection statute focused on residential mortgage settlement
practices.
11. What does a Loan Estimate generally provide to a borrower?
A. A guaranteed interest rate for every loan
B. Estimated loan terms, projected payments, and closing costs
C. The property's appraised value
D. The seller's net proceeds
The Loan Estimate gives the consumer important information about the proposed mortgage and
estimated closing costs.
