©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
RESPA Exam Study Guide Solutions
What is RESPA? - ANSWER✔✔-Real Estate Settlement & Procedures Act
What is another term for RESPA? - ANSWER✔✔-Regulation X
What is the purpose of RESPA? - ANSWER✔✔-To protect consumers by regulating COST and business
DISCLOSURES. RESPA provides consumers with the opportunity to shop for their best possible mortgage
solution. It ensures that consumers obtain information on prearranged business agreements, the cost of
closing a mortgage loan, and protects against excessive settlement costs and unearned fees.
Who is responsible for regulating RESPA? - ANSWER✔✔-Consumer Financial Protection Bureau (CFPB)
What loans are covered (regulated) by RESPA? - ANSWER✔✔-Federally regulated mortgage loans that
are secured by a first or subordinate lien on residential property.
Residential property includes dwellings design for the occupancy of 1 to 4 families and individual units of
condominiums, cooperatives, mobile homes, and trailers.
What loans are exempt from RESPA? (7 types) - ANSWER✔✔--Loans on property 25 acres or more
Page 1/9
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
-Business purpose loans including commercial and agricultural
-Temporary (interim) financing such as construction or bridge loans
-Vacant land, unless structure is there within 2 years of settlement date
-Any assumed mortgage loan where the lender did not have the right to approve a successive borrower
on existing loan
-Any conversion of a mortgage loan in which the existing terms are modified and a new note is not
required (i.e. loan modification)
Loans sold in the secondary market to someone other than FNMA, FHLMC, or other non-federally-
regulated entities
What disclosures are all the required disclosures with RESPA? - ANSWER✔✔-(H)ome Ownership
Counseling Disclosure
(F)orce Place Insurance
(F)orced Place Reminder
(L)oss Mitigation
(A)ffiliated Business Arrangement
(A)nnual Escrow
Page 2/9
FIRST PUBLISH OCTOBER 2024
RESPA Exam Study Guide Solutions
What is RESPA? - ANSWER✔✔-Real Estate Settlement & Procedures Act
What is another term for RESPA? - ANSWER✔✔-Regulation X
What is the purpose of RESPA? - ANSWER✔✔-To protect consumers by regulating COST and business
DISCLOSURES. RESPA provides consumers with the opportunity to shop for their best possible mortgage
solution. It ensures that consumers obtain information on prearranged business agreements, the cost of
closing a mortgage loan, and protects against excessive settlement costs and unearned fees.
Who is responsible for regulating RESPA? - ANSWER✔✔-Consumer Financial Protection Bureau (CFPB)
What loans are covered (regulated) by RESPA? - ANSWER✔✔-Federally regulated mortgage loans that
are secured by a first or subordinate lien on residential property.
Residential property includes dwellings design for the occupancy of 1 to 4 families and individual units of
condominiums, cooperatives, mobile homes, and trailers.
What loans are exempt from RESPA? (7 types) - ANSWER✔✔--Loans on property 25 acres or more
Page 1/9
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
-Business purpose loans including commercial and agricultural
-Temporary (interim) financing such as construction or bridge loans
-Vacant land, unless structure is there within 2 years of settlement date
-Any assumed mortgage loan where the lender did not have the right to approve a successive borrower
on existing loan
-Any conversion of a mortgage loan in which the existing terms are modified and a new note is not
required (i.e. loan modification)
Loans sold in the secondary market to someone other than FNMA, FHLMC, or other non-federally-
regulated entities
What disclosures are all the required disclosures with RESPA? - ANSWER✔✔-(H)ome Ownership
Counseling Disclosure
(F)orce Place Insurance
(F)orced Place Reminder
(L)oss Mitigation
(A)ffiliated Business Arrangement
(A)nnual Escrow
Page 2/9
