A borrower's escrow account has a surplus of $75 after the annual analysis. What must the lender do?
Correct Answer
B) Return the surplus to the borrower within 30 days
Under RESPA, if an escrow account analysis reveals a surplus of $50 or more, the lender must return the surplus to the borrower within 30 days of the analysis.
Why This Is the Correct Answer
Under RESPA, if an escrow account analysis reveals a surplus of $50 or more, the lender must return the surplus to the borrower within 30 days of the analysis.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?
Under what circumstances can a Qualified Mortgage include a prepayment penalty?
A borrower is considering paying discount points to reduce their interest rate. Each point costs 1% of the loan amount and reduces the rate by 0.25%. On a $300,000 loan, how much would the borrower pay for 2 discount points?
A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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A borrower wants to finance a $600,000 home purchase with an FHA loan in an area where the conforming loan limit is $766,550 and the FHA loan limit is $472,030. What is the maximum FHA loan amount available?
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A refinance transaction involves a property worth $500,000. The existing first mortgage balance is $350,000 and the borrower wants to take cash out, creating a new loan of $400,000. What is the LTV ratio?