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, what is the primary purpose of the Annual Percentage Rate (APR) disclosure?
Answer: To provide a standardized measure of the true cost of credit
APR under TILA provides a standardized cost measure that includes interest and certain fees, allowing borrowers to compare loan offers on equal footing.
RESPA Section 8 prohibits which of the following?
Answer: Paying kickbacks or unearned fees for referrals of settlement services
RESPA Section 8 specifically prohibits giving or receiving anything of value in exchange for referrals of real estate settlement service business.
The TRID rule (TILA-RESPA Integrated Disclosure) combined which two disclosure forms?
Answer: Loan Estimate and Closing Disclosure
TRID replaced the Good Faith Estimate and early Truth-in-Lending with the Loan Estimate, and replaced the HUD-1 and final Truth-in-Lending with the Closing Disclosure.
Under TRID, how many business days before consummation must the Closing Disclosure be received by the borrower?
Answer: 3 business days
The Closing Disclosure must be received by the borrower at least three business days before loan consummation.
Which tolerance category under TRID allows zero tolerance for increases from the Loan Estimate to the Closing Disclosure?
Answer: Lender fees and affiliated services
Lender charges and fees for required services where the borrower cannot shop fall in the zero-tolerance bucket, meaning they cannot increase from LE to CD.
What does RESPA require lenders to provide within three business days of receiving a complete loan application?
Answer: Loan Estimate
Under RESPA/TRID, lenders must deliver or mail the Loan Estimate within three business days of receiving a completed loan application.