Which of the following statements regarding the Real Estate Settlement Procedures Act (REPSPA) is true?
A. It applies to residential and commercial transactions
B. The borrower in entitled residential transactions, including seller financing
C. It covers all financed residential transactions, including seller financing
D. It sets the maximum interest rate that the lender can charge
Answer: B. The borrower is entitled to a good faith estimate of the settlement costs within three days of submitting an application.
Under RESPA, a lender is required to give a prospective borrower a good faith estimate of the settlement costs (closing costs) within three days after a written loan application is submitted (unless the loan is turned down within that period). Neither commercial transactions nor seller-financed transactions are covered by RESPA, and RESPA does not limit the interest rate lenders can charge.
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In event of default, real property may be sold without court action if the mortgage or other lien instrument contains
a. a trust deed. b. a power of sale. c. a tax deed. d. a right of entry.
A farmer owned Section #17 and sold the south one-half. He then fenced in the northern one-half. How many linear feet of fencing did he use if he had two 6 foot wide gates?
A) 27,720 B) 15,828 C) 18,530 D) 14,250