RESPA covers federally-related mortgage loans that are secured:
by a lien on residential real property (meaning 1-4 family residence sits on or will sit on land)
A RESPA application includes the submission of an applicant's financial information in anticipation of a credit decision relating to a federally related mortgage loan and requires what 6 pieces of information?
* property address
* estimate of property value
* mortgage loan amount sought
T or F
The lender must know the requested loan program before the loan estimate (LE) can be delivered
The lender can structure information collection to ensure they receive the requested loan program but only the 6 application elements are required for an application and therefore triggering the 3 day LE requirements
RESPA special information booklet (Your Home Loan Toolkit) only has to be provide for _____________.
purchase money transactions secured by a first lien
T or F
RESPA only applies to closed-end mortgage transactions.
RESPA servicing disclosure statements must only appear on the Loan Estimate (LE) for ______________.
first-lien, closed-end transactions
What is RESPA applicability to state laws?
state laws that are inconsistent with RESPA are preempted to the extend of their inconsistency.
However, RESPA does not annul, affect or exempt any person subject to state law provisions from complying with those laws with respect to settlement practices, except to the extent of their inconsistency.
T or F
RESPA disclosures can be provided in languages other than English.
Servicing disclosures should indicate:
whether the loan may be assigned, sold, or transferred to any other person during its duration
T or F
No fee may be charged for completion of any RESPA or TILA disclosure.
RESPA states that no person may give or receive a fee or anything of value in connection with:
any agreement or understanding that business related to a federally related mortgage will be referred to any person
No person may give or receive a portion of a fee for services connected with a federally related mortgage except _______________.
for services actually performed
It is illegal for two or more persons to split a fee for settlement services where ___________.
all or part of the fee is unearned
It is illegal for one settlement service provider to mark up the costs of the service without providing ________________.
any actual service to justify the additional costs
It is illegal for one settlement provider to charge the consumer a fee where no, nominal, or duplicative work is done or the fee is ________________.
in excess of the reasonable value of the service
A seller may not condition the sale of property that will be purchased on the buyer's purchase of title insurance ________________.
from any particular title company
A notice of transfer of servicing is required by transferor servicers and transferee servicers for transfer, sale, or assignments of mortgage loans and must be provided to the consumer:
* transferor notice must be delivered not less than 15 days after the effective date of the servicing transfer
* transferee notice must be delivered not more than 15 days after the effective date of the servicing transfer
* notices may be combined or delivered to the borrower not less than 15 days before the effective date of the servicing transfer
The notice of transfer of servicing must include information concerning any effect the transfer may have on the terms or the continued availability of _________________.
mortgage life or disability insurance or any other type of insurance and the action the borrower must take to maintain coverage
Lenders may not charge a later fee for the first ____ days after a servicing transfer if borrower made payments _________________.
* on time to the old servicer
Beginning as of the servicing transfer date, payment that are incorrectly received by the transferor servicer must either be _______________________ or _______________.
* transmitted to the transferee servicer
* retuned to the sender with notice of the correct recipient of the payment
If the borrower is required to make payments to escrow, the lender must make the payment for these items _______________.
in a timely manner
A servicer must investigate and respond to a notice of error within _____ after the servicer receives notice of a payoff error.
7 business days
A servicer must investigate and respond to a notice of error prior to the date of a foreclosure sale or within ____________ after the servicer receives the notice of error, whichever is ________.
* 30 business days
A servicer must investigate and respond to a notice of error no later than _____ for all other errors; but time limits may be extended by _________ if the servicer notifies the borrower of the extension and the reasons for it in writing.
* 30 business days
* 15 business days
A servicer may not report adverse information to any CRA if the payment is the subject of the notice of error, for ___________ after the receipt of the notice of error
A servicer must provide an acknowledgement in writing within ________ of receipt of a qualified information request.
5 business days
A servicer must maintain policies and procedures designed to assign personnel to a delinquent borrower by the time the servicer provides the notices _______________.
45 days after delinquency
A servicer must maintain policies and procedures designed to ensure that the servicer can provide live responses to borrower calls in ___________.
a timely manner
A complete loss mitigation application means an application for which the servicer has received:
all the information that the servicer requires from a borrower in evaluating applications for the loss mitigation options available.
If the servicer receives a loss mitigation application 45 days or more before a foreclosure sale:
the servicer must promptly review the application if it is complete and acknowledge the receipt of the application within 5 business days
For incomplete loss mitigation applications, the servicer must provide a notice that:
lists the additional documents required to make the application complete and a reasonable date for submitting additional information
Loss mitigation notices must include a statement that the borrower should consider contacting the servicers of _______________.
other mortgages secured by the same property to discuss loss mitigation options
If a loss mitigation packet is received more than 37 days before a foreclosure sale, then within 30 days of receipt, the servicer must evaluate the package and provide the borrower with a written notice stating:
the servicer's determination of which options it will offer to the borrower (if any) and the amount of time the borrower has to accept or reject the offer and the borrowers right to appeal
If a borrower's complete loss mitigation is denied for any trial or permanent loan modification option, a servicer must state in the notice sent to the borrower:
* the specific reason for the determination AND
* a statement (if applicable) that the borrower was not evaluated on any other criteria
Within 30 days of a borrower making an appeal the servicer must provide a notice to the borrower stating the servicer's determination of whether the servicer will offer the borrower a loss mitigation option and that the servicer's determination of the appeal ______.
RESPA escrow requirements include any account __________________ to pay taxes, insurance premiums, or there charges with respect to a federally related mortgage loan.
established or controlled by a servicer on behalf of a borrower
The lender must conduct an escrow account analysis before establishing the account to ________________.
determine how much the borrower must deposit into the account and the periodic escrow payment due
The lender must conduct an escrow account analysis at the completion of the escrow account computation year to _______________.
determine monthly escrow payments for the next year
The lender must submit an initial escrow account statement to the borrower ________ or ____________.
* at settlement
* within 45 days of settlement
Initial escrow account statements must include an itemized list of ________________ from the escrow account during the year.
* expected disbursements (taxes, insurance, etc.) AND
* anticipated dates of the charges
* amount servicer has selected as cushion
* trial running balance of the account
The lender must submit an annual escrow statement to the borrower within __________ of the completion of the escrow account computation year.
If the borrower pays off a loan during the escrow account computation year, the servicer must submit:
a short year statement to the borrower within 60 days after receiving the payoff funds
If, after conducting an analysis, a surplus of at least $50 exists in an escrow account, the lender must ___________.
refund the amount to the borrower
If, after conducting an analysis, a surplus of less than $50 exists in an escrow account, the lender may ___________.
* refund the amount OR
* credit it to the borrower's future payments
If, after conducting an analysis, a shortage exists in an escrow account, the lender may:
* allow the shortage to exist and do nothing OR
* allow the borrower to pay the shortage in equal payments over a 12 month time period OR
* (in cases where the shortage is less than one month's escrow payments) allow the borrower to pay the amount within 30 days
If, after conducting an analysis, a deficiency exists in an escrow account, the lender may:
* allow the deficiency to exist and do nothing OR
* allow the borrower to pay the deficiency in two or more payments over a 12 month time period OR
* (in cases where the deficiency is less than one month's escrow payments) allow the borrower to pay the amount within 30 days
RESPA civil money penalties are ____ for each unintentional failure to deliver an initial or escrow account statement with the total penalty not exceeding _____________ for a 12 month period.
RESPA civil money penalties are ____ for each intentional failure to deliver an initial or escrow account statement with the total penalty not exceeding _____________ for a 12 month period.
* no limit
Failure to follow mortgage servicing transfer requirements can result in ______ damages PLUS and additional amount up to _____ if the violation was a pattern or practice.
Servicers must retain records that document actions taken with respect to a mortgage until:
one year after the loan is discharged or the servicing is transferred
If illegal referral fees or kickbacks are taken, the bank or responsible individual may be liable for:
* three times the fee or kickback PLUS court costs and attorney's fees
* criminal fine up to $10,000 PLUS imprisonment for up to one year
When a lender references a service to an affiliated provider the lender must provide an __________disclosure that must be _________ and lenders may only require services in the case of ______________.
* affiliated business arrangement
* signed by the customer
* attorney, appraiser, or credit bureau
It is illegal to give or receive ______________for a referral of a settlement service (including the loan itself).
anything of value
T or F
RESPA kickbacks apply to bank employees
You cant kickback to yourself
What are the early intervention requirements of RESPA?
* good faith effort to make live contact with the delinquent borrower by the 36th day of delinquency
* must provide written notice to a delinquent borrower no later than the 45th day of the borrower's delinquency
Banks are required to notify the borrower within _____ of receiving an incomplete loss mitigation application.
Lenders must maintain all documents and data on each mortgage in ________ and any information must be placed there within _______.
* one place (can be paper or electronic)
* 5 days
Lenders may not commence foreclosures until the borrower is at least _______ delinquent.
T or F
Loans made for business purposes that are secured by a one- to four-family dwelling are exempt from the coverage of RESPA.
An interim construction loan is not covered by RESPA unless:
the lender has committed to provide permanent financing or unless it is for a term of two years or more
Can a bank refuse to pay the insurance premium and force place insurance if there is insufficient funds in the escrow account to cover the payment?
The Bank must advance funds to the escrow account to make the payment so the insurance will continue.