(3) If the residential real property securing a mortgage loan is not located in a State, the loan is not a federally related mortgage loan.
- 1 What is federally related mortgage loan?
- 2 Is a Heloc a federally related mortgage loan?
- 3 Which of the following would most likely not be considered a federally related mortgage loan as defined by RESPA?
- 4 What loans are federally backed?
- 5 What are the 6 RESPA triggers?
- 6 What is a RESPA violation?
- 7 What type of loan is not covered by RESPA?
- 8 What types of loans are covered by RESPA?
- 9 Which area does RESPA not cover?
- 10 What is Regulation Z?
- 11 How is a loan assumption documented quizlet?
- 12 What is a kickback under RESPA?
- 13 How do I know if my loan is federally backed?
- 14 What percentage of loans are federally backed?
“Federally related mortgage loans” are also defined to include installment sales contracts, land contracts, or contracts for deeds on otherwise qualifying residential property if the contract is funded in whole or in part by proceeds of a loan made by a lender, specified federal agency, dealer or creditor subject to
The basic coverage of RESPA is ” any federally related mortgage loan.” loans for property improvement; HELOC, home equity lines of credit; and. reverse mortgages.
A private mortgage loan would not be considered a federally-related mortgage loan.
What loans are federally backed?
There are five different types of federally-backed mortgages:
- Fannie Mae.
- Freddie Mac.
What are the 6 RESPA triggers?
The six items are the consumer’s name, income and social security number (to obtain a credit report), the property’s address, an estimate of property’s value and the loan amount sought.
What is a RESPA violation?
When any payment has been made or received for anything considered of value in exchanges for a referral of a settlement service in the real estate deal, the person doing so is violating the RESPA. This means if one company provides gifts or services for a referral, they are usually in violation.
What type of loan is not covered by RESPA?
Commercial or Business Loans Normally, loans secured by real estate for a business or agricultural purpose are not covered by RESPA. However, if the loan is made to an individual entity to purchase or improve a rental property of 1 to 4 residential units, then it is regulated by RESPA.
What types of loans are covered by RESPA?
RESPA applies to the majority of purchase loans, refinances, property improvement loans, and equity lines of credit.
Which area does RESPA not cover?
Transactions generally not covered under RESPA include: “ an all cash sale, a sale where the individual home seller takes back the mortgage, a rental property transaction or other business purpose transaction.” “The sale of a loan after the original funding of the loan at settlement is a secondary market transaction.
What is Regulation Z?
Regulation Z is a law that protects consumers from predatory lending practices. Also known as the Truth in Lending Act, the law requires lenders to disclose borrowing costs so consumers can make informed choices.
How is a loan assumption documented quizlet?
How is a loan assumption documented? The buyer and seller both sign an assumption agreement. Ronald is having his existing loan modified.
What is a kickback under RESPA?
Other forms of kickbacks illegal under RESPA include gifts, prizes and entries into raffles designed to reward agents for referring business, for example, to a title insurance company, surveyor or attorney.
How do I know if my loan is federally backed?
Another way for you to determine if you have a federal loan is by accessing the National Student Loan Data System (NSLDS®) site using your FSA ID. The NSLDS site displays information on all federal loan and grant amounts, outstanding balances, loan statuses, and disbursements.
What percentage of loans are federally backed?
According to Black Knight, at least 75 percent of all active single-family mortgages are backed by federal entities in either the primary or secondary mortgage markets. 60 or more days past due and not in forbearance, foreclosure, or bankruptcy.