TILA and RESPA Compliance Flashcards
6 cards from real Mortgage Loan Originator practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 TILA and RESPA Compliance flashcards as text
Under TILA, a borrower has a right of rescission for how many business days on a refinance of their primary residence?
Answer: 3 business days
TILA grants borrowers a three-business-day right to rescind a refinance transaction involving their principal dwelling with a new lender.
Which RESPA section requires lenders to provide an annual escrow account statement to borrowers?
Answer: Section 10
RESPA Section 10 limits the amount lenders may require in escrow accounts and mandates annual escrow account disclosure statements.
Under TILA, the 'finance charge' includes all of the following EXCEPT:
Answer: Hazard insurance premiums paid to insurer of borrower's choice
Hazard insurance premiums paid to an insurer chosen by the borrower are excluded from the finance charge under TILA.
RESPA's affiliated business arrangement (AfBA) disclosure must be provided:
Answer: At the time of referral to an affiliated service provider
When a settlement service provider refers a consumer to an affiliate, RESPA requires the AfBA disclosure to be given at the time of that referral.
Which TRID form replaced the HUD-1 Settlement Statement?
Answer: Closing Disclosure
The Closing Disclosure replaced the HUD-1 Settlement Statement and the final Truth-in-Lending disclosure under the TRID rule effective October 2015.
Under RESPA, a 'controlled business arrangement' is now referred to as:
Answer: Affiliated business arrangement
RESPA amendments renamed 'controlled business arrangements' to 'affiliated business arrangements' (AfBA), which require specific disclosure when referrals occur.