SAFE TILA and RESPA Regulations 2

Question 1

Under RESPA, what is the maximum tolerance for increases in third-party settlement service fees that the borrower cannot shop for?

Accepted Answer

0%

Answer

10%

Answer

15%

Answer

No limit

Question 2

Which TILA disclosure shows the total dollar amount a borrower will have paid after making all scheduled payments?

Accepted Answer

Total of Payments

Answer

Annual Percentage Rate

Answer

Finance Charge

Answer

Amount Financed

Question 3

A borrower rescinds a home equity loan on the third business day. Under TILA, within how many days must the lender return any money paid by the borrower?

Accepted Answer

10 business days

Answer

5 calendar days

Answer

20 calendar days

Answer

30 calendar days

Question 4

RESPA Section 8 prohibits which of the following practices?

Accepted Answer

Paying referral fees between settlement service providers

Answer

Charging origination fees

Answer

Requiring title insurance

Answer

Collecting escrow reserves

Question 5

Under the TRID rule, which document replaces the HUD-1 Settlement Statement for most mortgage transactions?

Accepted Answer

Closing Disclosure

Answer

Loan Estimate

Answer

Good Faith Estimate

Answer

Truth-in-Lending Disclosure

Question 6

Which of the following loan types is generally exempt from RESPA coverage?

Accepted Answer

Loan secured by 26 or more acres

Answer

Purchase money mortgage for a primary residence

Answer

Home equity line of credit

Answer

Refinance of an owner-occupied duplex

Question 7

Under TILA, when must the Loan Estimate be delivered to the borrower after receiving a complete application?

Accepted Answer

Within 3 business days

Answer

Within 1 business day

Answer

Within 5 business days

Answer

Within 7 business days