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

Zero tolerance applies to third-party fees for services borrowers cannot shop for, such as the lender's appraisal or credit report.

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

The Total of Payments is the sum of all scheduled payments over the life of the loan, including principal, interest, and certain fees.

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

TILA requires creditors to return any money or property given by the borrower within 20 calendar days after receipt of the rescission notice, but the standard lender-return window is 20 days.

Question 4

RESPA Section 8 prohibits which of the following practices?

Accepted Answer

Paying referral fees between settlement service providers

Answer

RESPA Section 8 prohibits kickbacks and unearned fees, including referral fees paid between settlement service providers.

Question 5

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

Accepted Answer

Closing Disclosure

Answer

The Closing Disclosure replaced the HUD-1 Settlement Statement under the TRID (TILA-RESPA Integrated Disclosure) rule effective October 2015.

(SAFE) Certified Secure and Fair Enforcement Mortgage Loan Originator Practice Test

(SAFE) Certified Secure and Fair Enforcement Mortgage Loan Originator Practice Test

SAFE TILA and RESPA Regulations 2