Safety and Compliance Flashcards

RESPA Section 8 mainly prohibits which practice?

Answer: Kickbacks and unearned fees for referring settlement services

Section 8 bars giving or accepting anything of value for referring settlement service business, and also bars fee splits for services not performed.

Under TRID, how soon before consummation must the borrower receive the Closing Disclosure?

Answer: At least 3 business days

The CFPB's TRID rule requires the borrower to receive the Closing Disclosure at least three business days before consummation.

Within what timeframe must a lender deliver the Loan Estimate after receiving a loan application?

Answer: 3 business days

TRID requires the Loan Estimate to be delivered or mailed within three business days of application.

Which change to a Closing Disclosure triggers a new three-business-day waiting period?

Answer: A prepayment penalty is added to the loan

Under TRID, only an APR that becomes inaccurate, a change in loan product, or an added prepayment penalty restarts the three-day wait.

A brokerage refers clients to a title company it partly owns. What does RESPA require?

Answer: A written Affiliated Business Arrangement disclosure, and the client stays free to choose another provider

Affiliated business arrangements are allowed if the relationship is disclosed in writing, use isn't required, and the only return is from ownership.

Which federal agency currently has primary rulemaking and enforcement authority over RESPA and TRID?

Answer: Consumer Financial Protection Bureau

The Dodd-Frank Act moved RESPA authority from HUD to the CFPB, which also issued the TRID rule.

A buyer is buying a home built in 1972. Under federal lead-based paint rules, what must the buyer be offered?

Answer: A 10-day opportunity to conduct a lead-based paint inspection or risk assessment

For pre-1978 housing, buyers must get the EPA pamphlet, the seller's disclosure, and a 10-day inspection opportunity unless they waive it in writing.