Which transaction requires a special information booklet to be given to the customer?

With a federally-related mortgage loan intended for the purchase of a one-to-four family residential property, a special information booklet must be given to the customer.

Question:  Which transaction requires a special information booklet to be given to the customer?

Answer:  A federally-related mortgage loan intended for the purchase of a one-to-four family residential property

When must the servicer submit an initial escrow account statement to the borrower?

A loan servicer must submit an initial escrow account statement to the borrower at settlement or within 45 days of settlement.

Question:  When must the servicer submit an initial escrow account statement to the borrower?

Answer:  At settlement or within 45 days of settlement

What must be included in the annual escrow statement submitted by the servicer?

What must be included in the annual escrow statement submitted by the servicer?

A servicer is required to submit a statement to the borrower at least once for a 12-month period, and within 30 days of the conclusion of such period, a statement clearly itemizing the amount of the current monthly payment, portion of the monthly payment being placed in the escrow account, and the total amount paid out of the escrow account during the period.

Questions:  What must be included in the annual escrow statement submitted by the servicer?

Answer:  Total amount paid out of the account

If a lender has either an affiliate relationship or a direct or beneficial ownership interest of more than one percent in a provider of settlement services and the lender directly or indirectly refers business to the provider, this relationship is referred to as a what kind of business arrangement?

When a lender has either an affiliate relationship or a direct or beneficial ownership interest of more than one percent in a provider of settlement services and the lender directly or indirectly refers business to the provider, this relationship is referred to as a what (type) business arrangement?

Answer:  Controlled

A violation of Section 8 may result in a maximum fine of?

Violating Section 8 will result in a maximum fine of up to $10,000.

Question:  A violation of Section 8 may result in a maximum fine of?

Answer:  $10,000

What year did RESPA become effective?

RESPA was approved and enacted by congress in 1974. The first year RESPA went into effect was in 1975.

Question: What year did RESPA become effective?

Answer:  1975

How long does the servicer have to acknowledge a borrower’s complaint in writing?

According to Section 6 of RESPA, borrowers who have a problem with the servicing of their loan (including escrow account questions), should contact their loan servicer in writing, describing the nature of their complaint. The servicer must acknowledge the complaint in writing within 20 business days of receipt of the complaint.

Question: How long does the servicer have to acknowledge a borrower’s complaint in writing?

Answer: 20 business days