CHCP CHCP Closing Costs & Fee Structures

Question 1

Which federal law requires lenders to provide borrowers with a Loan Estimate within three business days of receiving a loan application?

Accepted Answer

TILA-RESPA Integrated Disclosure (TRID)

Answer

RESPA

Answer

ECOA

Answer

HMDA

Question 2

At closing, an origination charge paid to the lender for making a loan is classified as a:

Accepted Answer

Section A fee

Answer

Prepaid item

Answer

Government recording charge

Answer

Escrow reserve

Question 3

Which closing cost is typically based on the sales price of the property and paid to the state or local government?

Accepted Answer

Transfer tax

Answer

Recording fee

Answer

Origination fee

Answer

Survey fee

Question 4

A closing cost that cannot increase from the Loan Estimate to the Closing Disclosure is said to fall under which tolerance category?

Accepted Answer

No tolerance / zero tolerance

Answer

10% tolerance

Answer

Unlimited tolerance

Answer

Good faith estimate category

Question 5

Which party typically pays the owner's title insurance premium in states where there is no established custom?

Accepted Answer

It is negotiable between buyer and seller

Answer

Always the buyer

Answer

Always the seller

Answer

The lender

Question 6

Which of the following is considered a prepaid item collected at closing rather than a closing cost fee?

Accepted Answer

Prepaid homeowners insurance premium

Answer

Appraisal fee

Answer

Credit report fee

Answer

Title search fee