Class 19 Flashcards
If a loan closes on August 20th and the buyers first house payment begins October 1, how many days interest adjustment would the lender need to collect at the closing if there are 260 days in a year?
Well, an October 1 payment covers September 1-30, so we would want August 20-30. So 10 days.
A buyer of real estate has received a loan estimate from the lender. How many days does the buyer have to show their intent to proceed with the loan?
10 days
According to RESPA, what must be given to a borrower within 3 business days of the loan application?
Loan estimate of closing costs
An information booklet
Mortgage servicing disclosure statement
Complaints for violations of RESPA may be filed with….
Consumer Financial Protection Bureau
The real estate settlement procedures act would apply to….
RESIDENTIAL
- loan being made on a four unit apartment building
- refinancing of a single family dwelling
- a Condominium unit
If a real estate broker were holding a good faith deposit for a buyer, the deposit would show up on a closing statement as a…
credit to the buyer
A place where a settlement must be reported
IRS
An item that is prorated
taxes
amount that has been paid
ccredit
to divide or distribute proportionately
probate
A charge that must be paid
debit
A prohibited act under RESPA
kickback
the final step between a buyer and seller
settlement
Where a buyer’s deposit is found on a closing sheet
credit column
A law that requires disclosure of closing costs
RESPA
A place where money is held by a third party
escrow
Sometimes called the closing ______ is the final step in a real estate transaction where the sale is completed
settlement
Internal Revenue requires that the sale or exchange of real property be reported. The settlement agent will report the transaction on a ______ form. As a general rule, the settlement agent is required to report the selling price and seller information. If there is no settlement agent, the order of reporting is as follows: attorney, title company, lender, and real estate broker.
1099-S
Who conducts a closing?
usually a settlement agent, but can also be a lender or attorney
Home Mortgage disclosure act: this law requires lenders to maintain, report and publicly disclose information about mortgages. This law was created to prevent _________, which is the practice of refusing to make loans on certain geographic areas
Redlining
DODD Frank Act
This law requires RESPA and Truth in Lending to be combined
The Real Estate Settlement Procedures Act (RESPA) applies to one-to-four family dwellings obtained through federally regulated lenders. RESPA may apply to _____, ________ and ________.
first mortgages
assumptions
refinance
RESPA is a consumer protection law that requires lenders to disclose all closing costs to the consumer. Consumers are given what two items
closing cost estimate
information booklet
A lender must wait _____ business days after providing the loan estimate before closing a mortgage loan
7
