Mortgage Loan Originator TILA and RESPA Compliance 3

Question 1

Which of the following triggers a revised Loan Estimate under TRID?

Accepted Answer

Borrower requests a different loan product after initial LE

Answer

Borrower changes their email address

Answer

Appraiser is changed by the lender

Answer

Title company updates its fee schedule

Question 2

Under TILA, what is the 'amount financed'?

Accepted Answer

The loan amount minus prepaid finance charges

Answer

The total loan amount including all fees

Answer

The total of all payments over the loan term

Answer

The principal balance after the first payment

Question 3

RESPA applies to federally related mortgage loans, which includes loans:

Accepted Answer

Secured by a lien on residential real property involving federally insured lenders or federal programs

Answer

Only made by federally chartered banks

Answer

Only for first-time homebuyers

Answer

Exceeding the conforming loan limit

Question 4

Which party is responsible for ensuring the Closing Disclosure is delivered on time under TRID?

Accepted Answer

The creditor (lender)

Answer

The real estate agent

Answer

The title company only

Answer

The settlement agent only

Question 5

Under TILA's right of rescission, which transaction is NOT eligible for rescission?

Accepted Answer

Purchase money mortgage on primary residence

Answer

Refinance with a new lender on primary residence

Answer

Home equity line of credit on primary residence

Answer

Second mortgage on primary residence

Question 6

What is the maximum escrow cushion a servicer may hold under RESPA Section 10?

Accepted Answer

Two months' escrow payment

Answer

One month's escrow payment

Answer

Three months' escrow payment

Answer

Six months' escrow payment