Section 4 Chapter 5

The correct answer is: Payment of the commission to the listing salesperson

When conducting a closing, the settlement agent is responsible for all of the following, EXCEPT: Select one: a. Collecting all legal documents and funds pertaining to the closing of the transaction b. Obtaining all information relevant to the marketability of the title c. Paying the net proceeds of the sale to the seller d. Payment of the commission to the listing salesperson

The correct answer is: Debit the seller; nothing to the buyer.

When the grantor's tax is calculated, how does the amount of the tax appear on the settlement sheet? Select one: a. Debit the buyer; credit the seller. b. Debit the seller; credit the buyer. c. Credit the seller, only. d. Debit the seller; nothing to the buyer.

The correct answer is: They would most likely be a debit to the buyer.

Which of the following statements is most accurate regarding how discount points are listed on a closing statement in the purchase of a home? Select one: a. They would always be a debit to the buyer. b. They would always be a debit to the seller. c. They would most likely be a debit to the seller. d. They would most likely be a debit to the buyer.

The correct answer is: An assumption.

Which of the following would NOT be subject to RESPA? Select one: a. A VA loan. b. An assumption. c. A conventional loan obtained from a federal savings and loan used to purchase a single family residence. d. A mortgage purchased by FNMA.

The correct answer is: Residential first mortgage loans for owner-occupied homes.

Which transactions are covered by RESPA? Select one: a. Residential first mortgage loans for owner-occupied homes. b. Residential first mortgage loans and owner financed loans. c. Commercial loans and residential first mortgage loans. d. All of these choices.

The correct answer is: True

In most states, title companies may be closing or escrow agents. Select one: a. True b. False

The correct answer is: Seller's satisfaction of mortgage, seller's deed to buyer, buyer's mortgage.

In which of the following sequences would the listed documents be recorded? Select one: a. Buyer's mortgage, seller's satisfaction of mortgage, seller's deed to buyer. b. Seller's deed to buyer, seller's satisfaction of mortgage, buyer's mortgage. c. Seller's satisfaction of mortgage, seller's deed to buyer, buyer's mortgage. d. Seller's satisfaction of mortgage, buyer's mortgage, seller's deed to buyer.

The correct answer is: Loans between family members.

RESPA covers all of the following loans EXCEPT? Select one: a. Loans between family members. b. Loans that use federal insurance programs. c. Loans that are subsidized by federal funds. d. Loans that might be sold on the secondary market to any federally backed agency.

The correct answer is: Allowing the settlement agent to charge a fee for conducting the closing.

RESPA prohibits all the following EXCEPT? Select one: a. Kickbacks and rebates. b. Requiring that title insurance be purchased by a certain insurer. c. Allowing a lender to collect as many months' taxes as it wants to for a tax escrow account. d. Allowing the settlement agent to charge a fee for conducting the closing.

The correct answer is: Real Estate Settlement Procedures Act.

Sam is a licensed real estate salesperson and is working with a buyer in the purchase of a single-family residence. Sam recommends ACME Title to the buyer for the purchase of title insurance. ACME pays a referral fee to Sam. This action violates which of the following laws? Select one: a. Truth-in-Lending Act. b. Fair Housing Act. c. Real Estate Settlement Procedures Act. d. None of the above, as the referral fee is not prohibited.

The correct answer is: Price fixing

The Federal Fair Housing Act is intended to protect the public from all of the following, EXCEPT: Select one: a. Blockbusting b. Price fixing c. Steering d. Redlining

The correct answer is: Every person who submits a loan application to a lender over which RESPA has jurisdiction.

The HUD information booklet must be given to which of the following? Select one: a. Every person who submits a loan application to a lender over which RESPA has jurisdiction. b. Every person who visits a lender's office inquiring about first mortgage loans. c. Every person to whom a broker shows a home. d. Every person who refinances their existing mortgage.

Zero Tolerance

These are costs for which the actual costs cannot exceed the estimated costs by any amount.

10% Toleranc

These charges include recording costs and charges for services for which the consumer can shop and where the borrower selects a vendor recommended by the lender.

Unlimited Tolerance

This category is for charges where the consumer is allowed to shop and where the consumer chooses not to use the provider recommended by the lender. There is no limit to how much these charges can exceed the amount listed on the Loan Estimate.

closing statement

t is a detailed accounting of all the financial aspects of the closing of a real estate transaction. Closing statements must be prepared for the buyer(s), the seller(s), and the real estate broker(s) involved in the transaction.

Closing Disclosure.

the HUD-1 and final TIL were combined into a new disclosure called the

Real Estate Settlement Procedures Act (RESPA

ensure that buyer and seller are fully informed as to all settlement costs, and to standardize real estate settlement practices.

Loan Estimate (Purpose)

form is to give an accurate estimation of the costs associated with the mortgage and settlement costs.

closing agent

prepares the closing statements and conducts the proceedings at closing. The closing agent may be a principal or supervising broker, an escrow agent, the buyer's or seller's attorney, a lender's representative, or a title company's representative.

Loan Estimate

. For most loans, the GFE and the initial TIL were combined into a single form called the

The correct answer is: False

An escrow closing agent acts only for the benefit of the seller. Select one: a. True b. False

The correct answer is: True

At closing, the seller receives credits for prepaid expenses related to the property. Select one: a. True b. False