SU # 56__Closing the Transaction Flashcards
What is the difference between a face-to-face closing and an escrow closing?
In a face-to-face closing, all issues are resolved during a single meeting involving all the parties and their attorneys, while in an escrow closing, the parties may never meet.
What does RESPA require lenders to give to borrowers?
The correct figures pertaining to their closing costs
RESPA does not apply to what kinds of loans?
Reverse mortgages
Home equity loans
Loans secured by mobile homes or other dwellings that are not real property, if the dwelling is not attached to real estate.
Loans made by persons who are not considered “creditors” because they make five or fewer mortgages per year.
Certain no-interest loans secured by subordinate liens made for the purpose of down payment, or similar home buyer assistance, property rehabilitation, energy efficiency, or foreclosure avoidance or prevention.
What disclosures are required at closing?
Closing Disclosure
Who prepares closing statements in Illinois?
The buyer’s lender, the lender’s agent, or the seller’s lawyer.
If an item is paid for in advance by the seller, how will it be handled on the settlement statement?
The buyer will receive a debit and the seller will receive a credit.
What do you call those items that the seller has incurred but have not been paid and how will they be handled on the settlement statement?
These items are paid in arrears. The buyer will get a credit and the seller will get a debit.
What is an example of a silent mortgage and what is this considered?
A borrower who does not have a down payment borrows the down payment from the seller in exchange for a second mortgage. The second mortgage is hidden from the lender and is not recorded after closing. This is considered mortgage fraud.
What document must be completed by a creditor if a mortgage loan is assigned to another loan service?
Servicing Transfer Statement
Service Agreement
Agreement of Service
Transfer of Loan Balance Agreement
Servicing Transfer Statement
Which of the following statements best define a closing statement?
A document that describes the ownership and sales activity of the transferred property.
A document that details the title search results.
A document detailing fees, commissions, insurance, and prorated charges necessary for the transfer of ownership to take place.
A document detailing federal transfer fees and expenses.
A document detailing fees, commissions, insurance, and prorated charges necessary for the transfer of ownership to take place.
Which document itemizes the estimated taxes, insurance premiums, and other charges anticipated to be paid from the Escrow Account during the first twelve months of the loan?
Initial Escrow Statement
Escrow Debit Statement
List of Accounts
Itemized Escrow Accounts Payable
Initial Escrow Statement
Equal item amounts on the closing statement that appear as a credit to one party and a debit to the other party is most likely a ______________________.
Fee charged by the closing agent.
Prorated Item
Debit to the seller
Debit to the buyer
Prorated Item
Jim’s brother Al, gives Jim $5,000 as a down payment on a property. Jim tells the lender that the down payment was a gift. We latter find that the $ 5,000 was a loan. What legal violations might be pending?
If Jim can repay the “gift’ than there is not violation
The lender can sue the closing agent for errors and omissions.
There is no recourse after 2 years from the close date.
This is a case of mortgage fraud.
This is a case of mortgage fraud.
Which party is responsible for expenses that will be paid in arrears?
The seller
The lender
The closing agent
The licensee
The seller
What document is required when a settlement service provider involved in a RESPA-covered transaction refers the consumer to a provider with whom the referring party has an ownership or other beneficial interest?
An Affiliated Financial Business Arrangement Disclosure (AFB)
An Affiliated Business Provider Disclosure
An Affiliated Business Ownership Disclosure
An Affiliated Business Arrangement (AfBA) Disclosure
An Affiliated Business Arrangement (AfBA) Disclosure
