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?
Correct Answer
A) Within 7 business days of the request
Under RESPA Section 6, servicers must respond to borrower requests for payoff information within 7 business days. The timing of the borrower's closing does not accelerate this requirement, though servicers may choose to respond faster as a business practice.
Why This Is the Correct Answer
Under RESPA Section 6, servicers must respond to borrower requests for payoff information within 7 business days. The timing of the borrower's closing does not accelerate this requirement, though servicers may choose to respond faster as a business practice.
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?
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?
A mortgage lender discovers that a credit report they obtained contains information about a different person with a similar name and Social Security number. The lender has already made a credit decision based on this mixed file. The lender should:
People Also Study
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
Which document is used to determine whether a property is located in a Special Flood Hazard Area?
Next Question
A Coast Guard member on active duty under Title 14 requests SCRA mortgage protections. The lender claims SCRA only applies to Army, Navy, Air Force, and Marines. How should this request be handled?