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What loans are not covered by RESPA?
Transactions generally not covered under RESPA include: “an all cash sale, a sale where the individual home seller takes back the mortgage, a rental property transaction or other business purpose transaction.” “The sale of a loan after the original funding of the loan at settlement is a secondary market transaction.
What kind of loans are governed by RESPA?
RESPA applies to the majority of purchase loans, refinances, property improvement loans, and equity lines of credit.
Which of the following is not covered by RESPA?
The following transactions are not covered by RESPA: an all cash sale, a sale where the individual home seller takes back the mortgage, a rental property transaction or other business purpose transaction.
Does RESPA applies to all residential mortgage loans?
The Real Estate Settlement Procedures Act (RESPA) is applicable to all “federally related mortgage loans,” except as provided under 12 CFR 1024.5(b) and 1024.5(d), discussed below. A manufactured home is located or is to be constructed using proceeds of the loan.
Is a reverse mortgage covered by RESPA?
The TILA-RESPA rule applies to most closed-end consumer credit transactions secured by real property, but does not apply to: HELOCs; • Reverse mortgages; or • Chattel-dwelling loans, such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land).
What is RESPA in mortgage?
The Real Estate Settlement Procedures Act of 1974 (RESPA) (12 U.S.C. The act requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process.
Which type of loan is exempt from RESPA quizlet?
RESPA does not apply to what kinds of loans? – Loans secured by mobile homes or other dwellings that are not real property, if the dwelling is not attached to real estate. – Loans made by persons who are not considered “creditors” because they make five or fewer mortgages per year. You just studied 31 terms!.
What is RESPA compliance?
The Act requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process. The Act also prohibits specific practices, such as kickbacks, and places limitations upon the use of escrow accounts.
What disclosures does RESPA require?
RESPA Disclosures Good Faith Estimate of Settlement Costs. Servicing Disclosure Statement. Affiliated Business Arrangements. HUD-1 Settlement Statement. Escrow Account Operation & Disclosures. Next Page > Processing Your Loan Application.
Which would not be considered a RESPA violation?
Which would NOT be considered a RESPA violation? A thing of minimal value used in the course of sales such as pens, mementos, coffee cups, hats, etc. is permissible, but the other three arrangements could be considered violations of RESPA. To violate RESPA, the thing of value does not have to be money.
What type of loan never requires monthly mortgage insurance?
Among all of the loan types available, VA loans are the only type that doesn’t require mortgage insurance regardless of your down payment. Instead, borrowers are required to pay an upfront funding fee. This fee helps to offset the cost of administering the loan.
Does RESPA apply to private lenders?
Q. Do the integrated mortgage disclosures apply to private/seller financing and/or land contracts? A. RESPA still applies to those loans if they qualify as federally related mortgage loans under Regulation X.
What regulation is RESPA?
The Department of Housing and Urban Development (HUD) originally promulgated Regulation X which implements RESPA. Congress has amended RESPA significantly since its enactment.
Who regulates RESPA?
The Department of Housing and Urban Development (HUD) originally promulgated Regulation X which implements RESPA. Congress has amended RESPA significantly since its enactment.
Does RESPA apply to bridge loans?
A “bridge loan” or “swing loan” in which a lender takes a security interest in otherwise covered 1- to 4-family residential property is not covered by RESPA and this part.
Who regulates mortgage lenders in Texas?
The Department of Savings and Mortgage Lending is an agency of the State of Texas and is subject to the oversight and under the jurisdiction of the Finance Commission of Texas.
When a lender makes a loan regulated by the Real Estate Settlement Procedures Act the loan applicant must be provided with which of the following?
RESPA requires mortgage brokers and lenders to provide borrowers with three specific disclosures at this point in the transaction: A Special Information Booklet must be provided to the prospective borrower at the time of the loan application or within three days thereafter.
What are RESPA documents?
RESPA requires that borrowers receive disclosures at various times in the transaction process. A Mortgage Servicing Disclosure Statement, which discloses to the borrower whether the lender intends to service the loan or transfer it to another lender. It also provides information about complaint resolution.
How does RESPA define a settlement service?
Definition of Settlement Service Rendering of services by a mortgage broker (including counseling, taking of applications, obtaining verifications and appraisals, and other loan processing and origination services, and communicating with the borrower and lender);.
Which of the following is prohibited by RESPA quizlet?
RESPA prohibits any person from giving or receiving a fee, kickback, or “a thing of value” for referring business to a mortgage broker or banker, or a title company. Saying thank you is not considered a thing of value for purposes of the Act. You just studied 12 terms!.
Which financial arrangement is exempt from the Real Estate Settlement Procedures Act?
Exemptions (§3500.5(b)) Twenty-five acres or more: A loan on property of 25 acres or more is exempt. Business purpose loans: Extensions of credit primarily for business, commercial, or agricultural use are exempt. To determine whether RESPA applies to a particular situation, persons may refer to Regulation X.
What are RESPA violations?
A RESPA violation occurs when a title company has a financial interest (or ownership) in a real estate transaction where a buyer’s loan is “federally insured.” RESPA is a consumer protection law created to make sure that buyers of residential properties of one to four family units are informed in detailed writing.
