When must a lender provide the initial escrow account statement to the borrower?
Correct Answer
D) Within 60 days after loan closing
Under RESPA Section 10, lenders must provide the initial escrow account statement to borrowers within 60 calendar days after loan closing.
Why This Is the Correct Answer
Under RESPA Section 10, lenders must provide the initial escrow account statement to borrowers within 60 calendar days after loan closing.
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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An MLO receives a loan application where the borrower's name is listed as 'John Smith Jr.' but their Social Security card shows 'John Smith II.' The borrower explains these refer to the same person. How should this discrepancy be handled for application purposes?
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A mortgage company originates an FHA loan and wants to securitize it immediately. The loan must first be sold to which entity before it can be included in a Ginnie Mae MBS pool?