Check Your Understanding Answers
- Explain the Real Estate Settlement and Procedures Act (RESPA).
The Real Estate Settlement and Procedures Act (RESPA) is of great benefit to consumers during the settlement process. It was created to ensure that the buyer and seller in a residential real estate transaction have knowledge of all settlement costs.
- What types of closings must follow the TRID rule?
Any closed end-loan secured by real property, including unimproved property.
- When must the Closing Disclosure be delivered to the borrower?
It must be delivered at least three business days prior to closing.
- Define consummation.
The time that a consumer becomes contractually obligated on a credit transaction
