Mortgage Loan Originator TILA and RESPA Compliance 2

Question 1

Under TILA, a borrower has a right of rescission for how many business days on a refinance of their primary residence?

Accepted Answer

3 business days

Answer

1 business day

Answer

2 business days

Answer

5 business days

Question 2

Which RESPA section requires lenders to provide an annual escrow account statement to borrowers?

Accepted Answer

Section 10

Answer

Section 6

Answer

Section 8

Answer

Section 9

Question 3

Under TILA, the 'finance charge' includes all of the following EXCEPT:

Accepted Answer

Hazard insurance premiums paid to insurer of borrower's choice

Answer

Mortgage broker fees

Answer

Loan origination fees

Answer

Discount points

Question 4

RESPA's affiliated business arrangement (AfBA) disclosure must be provided:

Accepted Answer

At the time of referral to an affiliated service provider

Answer

At closing only

Answer

Within three days of application

Answer

When the appraisal is ordered

Question 5

Which TRID form replaced the HUD-1 Settlement Statement?

Accepted Answer

Closing Disclosure

Answer

Loan Estimate

Answer

Settlement Summary

Answer

Final Truth-in-Lending

Question 6

Under RESPA, a 'controlled business arrangement' is now referred to as:

Accepted Answer

Affiliated business arrangement

Answer

Preferred provider arrangement

Answer

Joint venture agreement

Answer

Captive reinsurance arrangement