NMLS - Federal Mortgage-Related Laws questions with correct answers

What purpose does escrow analysis serve? Answer An aggregate escrow analysis (Annual Escrow Statement) is provided to borrowers annually, pursuant to Section 10 of RESPA. It's purpose is the prevent escrow overages. According to Section 10, the cushion of funds maintained in the escrow account cannot exceed one sixth (two months) of the annual cost of taxes and insurance. The regulations requiring the Loan Estimate and Closing Disclosure Answer TILA-RESPA Integrated Disclosure (TRID) Rule RESPA applies to Answer federally-regulated mortgage loans. This includes first and second liens and is such a broad definition that RESPA applies to virtually all residential mortgages secured by real property. What disclosure is due at the time of making a referral? Answer The Affiliated Business Arrangement Disclosure. Required by RESPA, it advises loan applicants that an affiliated business arrangement exists and lets them know that they are not required to use the referred entity. Who regulates RESPA? Answer the CFPB What is "Your Home Loan Toolkit: A Step-by-Step Guide"? Answer It provides information on the settlement process, explains consumer rights under RESPA, and warns against the use of false information on the loan application. It applies to purchase transactions only and is due within three business days of application.