©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
RESPA Exam Study Guide Solutions
R.E.S.P.A - ANSWER✔✔-Real Estate Settlement Procedures Act
What agency administers and enforces the rules and regulations established under RESPA? -
ANSWER✔✔-Consumer Financial Protection Bureau
Section 8 - ANSWER✔✔-Prohibits giving or receiving a fee, kickback, or anything of value
Loans that RESPA apply to - ANSWER✔✔-Federally Mortage-related mortgage loans
Regulation - ANSWER✔✔-X
What is the purpose of RESPA? - ANSWER✔✔-1) Protect consumers from excessive settlement costs and
unearned fees
2) Limit the amount of funds that creditors can require consumers to deposit in escrow accounts
3) Establish disclosures, policies, and procedures to facilitate timely communications between loan
servicers and consumers
The Loan Estimate must be provided - ANSWER✔✔-No later than three business days after receiving a
completed application. No later than seven business days prior to consummation.
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, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
The Closing Disclosure must be provided - ANSWER✔✔-At least three business days prior to
consummation
When is fee splitting illegal? - ANSWER✔✔-One or both settlement service providers fail to perform
enough work to earn the fee.
Borrow Credit - ANSWER✔✔-An amount paid to a third-party originator by a lender for locking a loan in
at an interest rate above the par rate
Section 10 - ANSWER✔✔-The cushion of funds maintained in the escrow account cannot exceed 1/6 of
the annual cost of taxes and insuarance
Purpose of Escrow Analysis - ANSWER✔✔-To prevent escrow overages
Annual Escrow Statement - ANSWER✔✔-An aggregate escrow analysis provided annually to borrowers
(Section 10 of RESPA)
Regulation X - ANSWER✔✔-Issues the rules for RESPA
APR must be initially disclosed - ANSWER✔✔-Within three business days of application
When can the transaction proceed following initial disclosure of APR? - ANSWER✔✔-The transaction can
proceed to closing after seven business day have elapsed from disclosures
Page 2/6
FIRST PUBLISH OCTOBER 2024
RESPA Exam Study Guide Solutions
R.E.S.P.A - ANSWER✔✔-Real Estate Settlement Procedures Act
What agency administers and enforces the rules and regulations established under RESPA? -
ANSWER✔✔-Consumer Financial Protection Bureau
Section 8 - ANSWER✔✔-Prohibits giving or receiving a fee, kickback, or anything of value
Loans that RESPA apply to - ANSWER✔✔-Federally Mortage-related mortgage loans
Regulation - ANSWER✔✔-X
What is the purpose of RESPA? - ANSWER✔✔-1) Protect consumers from excessive settlement costs and
unearned fees
2) Limit the amount of funds that creditors can require consumers to deposit in escrow accounts
3) Establish disclosures, policies, and procedures to facilitate timely communications between loan
servicers and consumers
The Loan Estimate must be provided - ANSWER✔✔-No later than three business days after receiving a
completed application. No later than seven business days prior to consummation.
Page 1/6
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
The Closing Disclosure must be provided - ANSWER✔✔-At least three business days prior to
consummation
When is fee splitting illegal? - ANSWER✔✔-One or both settlement service providers fail to perform
enough work to earn the fee.
Borrow Credit - ANSWER✔✔-An amount paid to a third-party originator by a lender for locking a loan in
at an interest rate above the par rate
Section 10 - ANSWER✔✔-The cushion of funds maintained in the escrow account cannot exceed 1/6 of
the annual cost of taxes and insuarance
Purpose of Escrow Analysis - ANSWER✔✔-To prevent escrow overages
Annual Escrow Statement - ANSWER✔✔-An aggregate escrow analysis provided annually to borrowers
(Section 10 of RESPA)
Regulation X - ANSWER✔✔-Issues the rules for RESPA
APR must be initially disclosed - ANSWER✔✔-Within three business days of application
When can the transaction proceed following initial disclosure of APR? - ANSWER✔✔-The transaction can
proceed to closing after seven business day have elapsed from disclosures
Page 2/6
