Term
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Definition
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Term
| What is the purpose of RESPA? |
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Definition
| To protect borrowers involved in home loan transactions. |
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Term
| What is the intention of RESPA? |
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Definition
| it protects borrowers by educating them about all costs that will be associated with the loan transaction... it thus facilitates shopping. |
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Term
| According to section 2601 RESPA was set up to accomplish through education and provision, the following: |
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Definition
1. More effective advance disclosure to home buyers and sellers of settlement costs.
2. The elimination of kickbacks and referral fees.
3. A reduction in the amounts home buys are required to place in escrow accounts for taxes and insurance.
4. Modernization of local recordkeeping of land title info. |
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Term
| What is the HUD-1 also known as? |
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Definition
| The uniform settlement statement. |
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Term
| When must the HUD-1 form be available to the borrower? |
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Definition
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Term
| When is an appraisal disclosure required? |
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Definition
| 7 days after the application is submitted. |
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Term
| Who is responsible for sending a transfer notice if the servicing lender assigns, sells, or transfers servicing rights of the loan to another servicer? |
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Definition
| Both the lender and the transferee. |
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Term
| When must the borrower receive a notice of transfer? |
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Definition
| At least 15 days before the effective date of transfer. |
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Term
| How many days does the borrower have to send payments to the correct servicer before late fees can be administered. |
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Definition
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Term
| What individual fines must an offending servicer pay in the event of non-compliance to RESPA laws. |
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Definition
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Term
| What must the servicer pay in the event of a class action law suit for noncompliance to RESPA laws. |
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Definition
1. Actual damages
2. Any additional damages.
Not exceeding $1000 per borrower and the total not exceeding $500K |
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Term
| If the transferor or transferee notifies the borrower and makes necessary adjustments to correct an error within (__) days after discovering it, then... |
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Definition
| 60, the transferor or transferee will not be considered liable for failure to comply with the provisions. |
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Term
| What are the penalties if an individual or organization willfully violates the section on kickback fees? |
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Definition
1) A fine of up to $10,000
2) Up to one year in prison
3) both of the above
4) a payment to the damaged parties equal to 3 times the original statement service fees. |
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Term
| What is the limit for the cushion that is allowed for escrow payments. |
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Definition
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Term
| When must the lender give the borrower an initial escrow account statement? |
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Definition
| at settlement or within 45 days after it. |
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Term
| How much of a fine will be assessed to the lender or servicer who fails to comply with escrow guidelines? |
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Definition
| $50 per failure, not exceeding $100,000 per twelve month period. |
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