CRU Regulatory Compliance & Legal Considerations 2

Question 1

Under RESPA Section 8, which of the following practices is explicitly prohibited?

Accepted Answer

Paying referral fees between settlement service providers

Answer

RESPA Section 8 prohibits kickbacks and unearned referral fees exchanged between settlement service providers.

Question 2

Under TRID, the Loan Estimate must be delivered to the borrower within how many business days of receiving a complete loan application?

Accepted Answer

3 business days

Answer

TRID requires lenders to provide the Loan Estimate within 3 business days of receiving a complete application.

Question 3

Under TRID, a borrower must receive the Closing Disclosure at least how many business days before loan consummation?

Accepted Answer

3 business days

Answer

TRID mandates the Closing Disclosure be received at least 3 business days before consummation to give borrowers time to review final terms.

Question 4

Which RESPA section requires lenders to provide the Special Information Booklet (Settlement Costs booklet) to mortgage applicants?

Accepted Answer

Section 4

Answer

RESPA Section 4 requires lenders to provide the Special Information Booklet at or before the time of loan application.

Question 5

Under TILA, which of the following constitutes a valid 'changed circumstance' allowing a revised Loan Estimate?

Accepted Answer

Information relied upon at application that later proves inaccurate

Answer

A valid changed circumstance under TRID includes discovering that information relied upon at application was inaccurate or incomplete.

(CRU) Certified Residential Underwriter Practice Test