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Flashcards in Settlement Procedures Deck (12)
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1

Under RESPA Section 1024.2 Settlement Services include
I - prepartion of documents
II - Provisions of title services
III - Notarization of Documents
IV - Conducting of Settlement

a - I, IV
b - II, IV
c - I, II, IV
d - I, II, III, IV

Under RESPA they are all considered settlement serviced. D

2

Under Respa Section 1024.2 Title Services include
I - Any service involved in provision of title insurance
II - Title Examination and evaluation
III - Clearance of underwriting objections
IV - Preparation and issuance of title commitments and policies

a - I, IV
b - II, IV
c - I, II, IV
d - I, II, III, IV

Under RESPA they are all considered title services. D

3

RESPA applies to which of the following
- loans on seller- financed property
- business purpose loans
- federally- related mortgage loans
- private investor loans

Federally Related mortgage loans

4

With respect to state laws that are inconsistent with RESPA regulations
- RESPA regulations always take priority
- state regulations always take priority
- whichever is more consumer- protective has priority
- the two cancel each other out, leaving no regulation

Whichever is more consumer-protective has priority

5

Section 8 of RESPA permits a payment by a title company to its duly appointed agent for
- services the underwriter actually performed on behalf of the title agent
- expense reimbursement for kickbacks paid to realtors and mortgage brokers
- the promotion and sale of the title insurance product
- services actually performed by the title agent in the issuance of a title policy

services actually performed by the title agent in the issuance of a title policy

6

When a person in a position to refer settlement service business receives a payment for providing additional services as part of a real estate transaction, such payment must be for the services that are all of the following EXCEPT
- actual
- necessary
- favorable to the recipient/payor
- distinct from primary services provided

favorable to the recipient/payor

7

Under RESPA, many of the complaints about SHAM affiliated business arrangements include that the new entity
- performs little, if any, real settlement services
- performs full settlement services in exchange for compensation
- is fully staffed and functions like and independent provider
- is owned by multiple settlement services providers which is a conflict of interest

Performs little, if any, real settlement services

8

For RESPA transactions involving affiliated business arrangements, the affiliated business disclosure must be given to the consumer
- prior to or at the time the referral is made
- one business day in advance of closing
- three business days prior to closing
- in conjunction with issuance of final policies

Prior to or at the time the referral is made

9

Under RESPA, disclosure of an affiliated business arrangement must
- be in writing and not require use of the referred providers
- disclose the nature of the relationship between the service provider and the person making the referral
- explain ownership and financial interest of such arrangement
- provide an estimate or range of charges of provider

All of these must be in an affiliated business disclosure

10

RESPA Section 8(a) specifically prohibits any person from giving or accepting a ____ for the referral of settlement service business involving a federally related mortgage loan
- fee
- kickback
- thank you card
- think of value

All but a thank you card are prohibited

11

Under RESPA Statement of Policy 1996-4, where a title insurer provides it's title insurance agent with a proforma commitment, typing, or other document preparation services
- the agent may still be paid for the provision of those services
- the agent did not actually perform core title services as defined under 8(c)(1)(b)
- the agent may bill for and retain the fee for services provided by the title insurer
- the agent may be paid for such services if the agent pressed the "print" button on their computer to print the commitment schedules prepared by the title insurer

The agent did not perform core title services as defined under 8(c)(1)(b)

12

It is HUDS enforcement position, under RESPA Statement of Policy 1996-4, that is is difficult to justify the payment of a significant portion of the title insurance risk premium to a title insurance agent
- who performs full core title agent services and assumes full responsibility for same
- who performs and assumes responsibility for the title search and examination function
- who fails to perform the title search and outsources the closing function to an attorney
- who fails to perform and assume responsibility for the title examination function

who fails to perform and assume responsibility for the title examination function.