Which of the following loans is exempt from RESPA's escrow account requirements?
Correct Answer
D) A loan secured by 26 or more acres
RESPA's escrow provisions do not apply to loans secured by property of 25 acres or more. Loans on 26 or more acres are specifically exempt from RESPA's escrow account requirements.
Why This Is the Correct Answer
RESPA's escrow provisions do not apply to loans secured by property of 25 acres or more. Loans on 26 or more acres are specifically exempt from RESPA's escrow account requirements.
More Mortgage Knowledge Questions
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A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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A property appraises for $400,000. The borrower is getting an 80% first mortgage and a 15% second mortgage. If the lender requires a maximum CLTV of 95%, what is the maximum additional financing the borrower could obtain?
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