RESPA closing disclosure timeline, the TRID rule, and settlement cost disclosure requirements tested on the SAFE Act exam.
35 cards · basic cards · AI-written, checked twice. Edit anything.
- What does RESPA stand for?
Show answer
Real Estate Settlement Procedures Act- What is the primary purpose of RESPA?
Show answer
To ensure consumers receive clear, timely information about settlement costs and prevent kickbacks- What does TRID stand for?
Show answer
Truth in Lending and Real Estate Settlement Procedures Act- When did the TRID rule take effect?
Show answer
October 3, 2015- How many business days before closing must a Closing Disclosure be provided?
Show answer
At least 3 business days- What is the Closing Disclosure form?
Show answer
A final settlement statement disclosing all charges and terms of the mortgage transaction- If material changes occur after Loan Estimate issuance, what must happen?
Show answer
A new Closing Disclosure must be issued with another 3-business-day waiting period- Can the Closing Disclosure be provided electronically?
Show answer
Yes, if the borrower consents to electronic delivery- What is a Loan Estimate form?
Show answer
A form provided within 3 business days of loan application disclosing estimated loan terms and costs- How many business days can pass between Loan Estimate and closing?
Show answer
At least 3 business days must pass- Can a lender charge more than estimated for any closing cost?
Show answer
Only if the cost is in the 10 percent tolerance category- Which closing costs have zero cost tolerance and cannot increase?
Show answer
Interest rate lock fees, lender title policy insurance, transfer taxes, and HOA transfer fees- Which closing costs can increase up to 10 percent if underestimated?
Show answer
Property appraisal, credit report, flood determination, title search, and title insurance- Who is subject to RESPA requirements?
Show answer
Lenders, mortgage brokers, settlement service providers, and title companies- When must an affiliated business arrangement disclosure be given under RESPA?
Show answer
Within 3 business days of loan application
FlashKeepers