Closing Statements Flashcards
What does the abbreviation RESPA stand for?
Real Estate Settlement Procedures Act
What does the abbreviation TRID stand for?
TILA/RESPA Integrated Disclosure
Which one of these items would not be prorated on the day of closing?
- Property Taxes
- Homeowner’s Association fees
- Rents for investment property
- Attorney fees
Attorney fees
What are some items that are paid in advance during the closing process?
- Insurance
- Interest (Buyer)
RESPA covers loans on what type of transactions?
Residential involving a new first mortgage loan
What does CLO stand for?
Computerized Loan Originations
The buyer has the right to review the Closing Disclosure form within how many business days before closing?
Three
What item would be a credit to the buyer on the settlement statement?
Loan amount
How does a prorated item appear on the settlement statement?
As a debit to one party and a credit to the other party for the same amount
The buyer has the right to review the Loan Estimate form within how many days after the loan application?
Three
Does signing the Closing Disclosure document indicate acceptance of the loan?
No
What does the abbreviation TIP stand for?
Total interest percentage
What’s the purpose of a buyer’s escrow account when purchasing real estate?
To hold money for certain payments until they are paid out
How many pages does the Closing Disclosure document contain?
Five
The Closing Disclosure form replaced what forms?
HUD-1/Final TIL
