Which disclosure is required by the Real Estate Settlement Procedures Act quizlet?

What disclosures are required by RESPA?

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 of the following is a disclosure that must be provided before settlement?

Disclosures Before Settlement

Another required disclosure before settlement is the HUD-1 Settlement Statement. This is a form that lists all fees that will be charged to the borrower and the seller at closing. The borrower may review the HUD-1 Settlement Statement one day before closing.

What is the Real Estate Settlement Procedures Act quizlet?

allow consumers to obtain information on the costs of closing so that they can shop for settlement servicers and protect consumers from excessive settlement costs and unearned fees through mandatory disclosure requirements and established prohibited practices.

What does the Real Estate Settlement Procedures Act RESPA require?

The Real Estate Settlement Procedures Act of 1974 (RESPA) (12 U.S.C. 2601 et seq.) … 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.

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What is Reg Z in lending?

Regulation Z prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators. The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.

Who is subject to RESPA?

RESPA applies to the majority of purchase loans, refinances, property improvement loans, and equity lines of credit. RESPA requires lenders, mortgage brokers, or servicers of home loans to provide disclosures to borrowers concerning real estate transactions, settlement services, and consumer protection laws.

What is an approval disclosure?

Approval Disclosure means a written statement telling me the amount of the Loan that you have approved and other information that is required by law, including my right to accept this Loan within 30 days after receipt of, or the date indicated on, the Private Education Loan Approval Disclosure.

What transactions are exempt from 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 are TILA disclosures?

The federal Truth-in-Lending Act – or “TILA” for short – requires that borrowers receive written disclosures about important terms of credit before they are legally bound to pay the loan. …

What is the effect of an as is clause in a purchase agreement?

By agreeing to an “as is” clause, a buyer assumes the responsibility of the assessing a property’s value and condition. Further, the buyer assumes the risk that the property will be less than the purchase price.

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What is one protection afforded consumers under the Real Estate Settlement Procedures Act?

Consumer Protection

RESPA covers loans secured with a mortgage placed on a one-to-four family residential property. These include most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit.

What law regulates settlement and closing procedures and practices quizlet?

The Real Estate Settlement Procedures Act (RESPA) is about closing costs and settlement procedures.