MLO STUDY GUIDE

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SUONGTPHUNG
ID:
28804
Filename:
MLO STUDY GUIDE
Updated:
2010-08-03 03:45:51
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MLO STUDY GUIDE
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MLO STUDY GUIDE
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  1. RESPA
    • -REAL ESTATE SETTLEMENT PROCEDURE ACT
    • -REGULATION X
    • -GOVERNED BY HUD
  2. PURPOSE OF RESPA?
    • - CREATE MORE EFFICIENCY EARLY DISCLOSURES TO HELP CONSUMERS BECOME BETTER SHOPPERS, WHICH ENCOURAGES COMPETITION AMONGST SETTLEMENT SERVICE PROVIDERS
    • -ELIMINATE KICKBACKS AND REFERRAL FEES THAT UNNECCESSARILY INCREASE THE COST OF CLOSING
    • -REDUCE THE AMOUNT HOMEBUYERS ARE REQUIRED TO PLACE IN ESCROW
  3. REPSA COVERS?
    • 1ST AND 2ND MORTGAGES RELATED TRANSACTION ON RESIDENTIAL REAL PROPERTY DESIGNED AS A PRINCIPAL DWELLING ON 1-4 FAMILY UNITS.
    • -INCLUDES: PURCHASES, REFINANCE, LENDER APPS ASSUMPTION, HOME IMPROVEMENTS, HELOCS, REVERSE MORTGAGES, TIME SHARES WITH LIENS, MFG HOMES ATTACHED TO PROPERTY, CONSTRUCTION LOANS USED TO PURCHASE PROPERTY BY THE FIRST USER.

    DOES NOT COVER: CASH SALES, SELLER HELD MORTGAGES,RENTAL OR BUSINESS PROPERTY, CONSTRUCTIONS LOANS WITHOUT PERMANENT FINANCING, CONVERSIONS AND HOMES WITH 25+ ACRES.
  4. REGULATION X REQUIRES DISCLOSURE?
    YES BY THE ORIGINATING PARTY.

    • AT APPLICATION
    • -GFE AT APPLICATION OR WITHIN 3 BUSINESS DAYS OF APPLICATION WITH NO COST OTHER THAN THE COST OF A CREDIT REPORT.
    • -SERVICING DISCLOSURE STATEMENT
    • -HUD SPECIAL INFORMATION BOOKLET (ON PURCHASE ONLY)

    • UPON REFERRAL
    • -AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE (ABA) UPON REFERRAL OF AN AFFILIATED SETTLEMENT SERVICE PROVIDER

    • AT CLOSING
    • -HUD1 SETTLEMENT STATEMENT (OR 1 BUSINESS DAY IN ADVANCE IF REQUESTED)

    • AFTER CLOSING
    • -INITIAL ESCROW STATEMENT (AT CLOSING OR WITHIN 30 DAYS AFTER CLOSING)
    • -ANNUAL ESCROW STATEMENT
    • -TRANSFER OF SERVICING STATEMENT( 15 DAYS BEFORE TRANSFER)
  5. REGULATION X PROHIBITATION?
    • 1. LIMITS THE WORKING ESCROW BALANCE TO $50 ABOVE 1/6 OF THE ANNUAL PAYMENT
    • 2. VIOLATION OF SECTION 8 ANTI KICKBACK PROVISION FINES UP TO $10,000 AND OR IMPRISONMENT UP TO ONE YEAR
    • 3. KICKBACKS IN EXCHANGE FOR REFERRALS

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