Check Your Understanding Answers
- What is the purpose of the Real Estate Settlement Procedures ACT (RESPA)?
RESPA was created to ensure that the buyer and seller in a residential real estate transaction involving a new first mortgage loan have knowledge of all settlement costs.
- List three types of loans that do not require compliance with the TRID rule? (Additional correct answers on page 58.)
- Reverse mortgages
- Home equity loans
- Loans secured by mobile homes or other dwellings that are not real property, if the dwelling is not attached to real estate.
- When must the Loan Estimate be delivered to the borrower?
The Loan Estimate must be delivered within three business days of loan application.
- Who is generally responsible for ensuring the Closing Disclosure is delivered to a buyer no later than 3 business days before closing?
The creditor is generally responsible for insuring that the Closing Disclosure is delivered to the buyer. However, the creditor may contract with a settlement agent to provide the Closing Disclosure on behalf of the creditor.
