A mortgage broker refers a borrower to a title company in which the broker owns a 15% interest. Which RESPA requirement applies?
Correct Answer
A) AfBA disclosure must be provided
RESPA requires AfBA disclosure when there is any ownership interest of more than 1% in an affiliated business, regardless of the percentage owned.
Why This Is the Correct Answer
RESPA requires AfBA disclosure when there is any ownership interest of more than 1% in an affiliated business, regardless of the percentage owned.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
Which information is NOT required to be included in an AfBA disclosure?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
A borrower refinances their primary residence on Tuesday and receives the required TILA disclosures. Assuming no federal holidays, what is the last day they can exercise their right of rescission?
A borrower's mortgage payment includes principal, interest, taxes, insurance, and a monthly HOA fee collected by the lender. Which components are included in the finance charge calculation?
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A mortgage company sends an adverse action notice that includes all required FCRA elements but fails to include the numerical credit score. The company claims they don't provide credit scores in adverse action notices as a matter of policy. This practice is:
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A mortgage originator receives a subpoena requesting customer financial information in a civil lawsuit between two private parties, neither of which is the customer. The customer has not consented to the disclosure. Under GLBA, the originator should: