Free 5-question sample test with instant feedback. See how ready you are.
Question 1
What does RESPA stand for, and what is its primary purpose?
Answer: Real Estate Settlement Procedures Act. Its primary purpose is to require disclosures about settlement costs and prohibit kickbacks and referral fees in federally related mortgage transactions.
Question 2
Under RESPA, what is the maximum penalty for a violation of the anti-kickback provision (Section 8)?
Answer: Up to $10,000 in fines, up to one year in prison, or both, per violation.
Question 3
What is a 'controlled business arrangement' (AfBA) under RESPA, and what must be disclosed?
Answer: An affiliated business arrangement (AfBA) exists when a settlement service provider refers business to an affiliate. The referrer must disclose the arrangement in writing at or before the time of referral.
Question 4
Under RESPA, within how many business days must a lender provide a Loan Estimate after receiving a loan application?
Answer: The lender must provide the Loan Estimate within three business days of receiving a completed loan application.
Question 5
What is the maximum amount a lender can require a borrower to maintain in an escrow account as a cushion under RESPA?
Answer: RESPA limits the escrow cushion to a maximum of two months' worth of escrow payments.