CMB Secondary Market & Loan Servicing 2

Question 1

Under RESPA, when servicing is transferred, how far in advance of the effective date must the transferor servicer generally notify the borrower?

Accepted Answer

At least 15 days

Answer

Regulation X requires the transferor to give notice at least 15 days before the effective date of transfer.

Question 2

During the 60-day period after a servicing transfer, what happens if a borrower mistakenly sends a timely payment to the prior servicer?

Accepted Answer

The payment may not be treated as late and no late fee may be imposed

Answer

RESPA protects borrowers for 60 days after the transfer from late fees on timely payments sent to the old servicer.

Question 3

What is the maximum escrow cushion a servicer may generally hold under Regulation X?

Accepted Answer

One-sixth of estimated annual disbursements

Answer

The cushion cannot exceed one-sixth of estimated total annual escrow disbursements, roughly two months.

Question 4

An annual escrow analysis reveals a surplus of $75 on a current loan. What must the servicer generally do?

Accepted Answer

Refund it to the borrower within 30 days of the analysis

Answer

Surpluses of $50 or more on current loans must be refunded within 30 days of the escrow analysis.

Question 5

Which entity guarantees timely payment of principal and interest on MBS backed by FHA, VA, and USDA loans, with the full faith and credit of the U.S. government?

Accepted Answer

Ginnie Mae

Answer

Ginnie Mae is a government corporation whose guaranty carries the full faith and credit of the United States.

CMB - Certified Mortgage Banker Practice Test

CMB - Certified Mortgage Banker Practice Test

CMB Secondary Market & Loan Servicing 2