1,2,4,7,9
Government Regulation of Real Estate Closing REVIEW QUESTIONS 577 what is the purpose of RESPA? transactions are subject to RESPA? Which What trans ansactions are exempt? 3. Why are kic What is the 5. What real are kickbacks prohibited under RESPA? is the purpose of the Truth-in-Lending Act? bet real estate transactions are subject to the Truth What disclosures does the Truth-in-Lending Act require before the dosing of a residential real estate loan transaction? 8. What is the purpose of the right of rescission under the Truth-in-Lending Act? 9. What disclosures must be made under the adjustable interest rate disclosure requirements? 10. What residential loans are exempt from the right of rescission under the Truth-in-Lending Act? in-Lending Act? hich transactions are exempt from the Truth-in- 6. Which Lending Act? CASE PROBLEMS 1. You are assie are assisting an attorney in the closing of a loan made by a federally insured savings and loan association to facilitate the purchase of a home. The loan is closing on October 15. The first payment under the loan will be due December 1. The real estate taxes on the home for the current year were due and payable on September 1, n September 1, and they have been paid in the amount of $1,800. If the lender requests that you escrow taxes under its loan, how much money do you need to collect for the escrow at the closing on October 15? The firm you work with closes a number of real estate loans with a Federal Deposit Insurance Company-insured bank. The firm does not do its own title examination work but instead retains an independent title examiner to do the title examinations. The firm at closing charges compensate the form for reviewing the title examinat and typing the title examination from the title exami notes. Is this practice legal under RESPA 3. How many copies of the right to rescind must be in a loan transaction secured by a vacatu by a husband and wife? 4. You are assisting in a real estate closing that July 2. The closing is subject to the truth-in- right of rescission. On what day does the right sion expire? 5. Check your state laws to see if your state has mortgage fraud act. Copy the statute and we report summarizing the content of your state fraud act. The report should cover such thi actions constitute mortgage fraud and wha ties for mortgage fraud are. a title examination fee, of which 75 percent goes to the title examiner and 25 percent is retained by the firm to ADDENDUM Exhibit 15-3 Rescission Model Form (Gen Exhibit 15-4 Nonrescind Statement Exhibit 15-1 HUD-1 Settlement Statement Exhibit 15-2 Truth-in-Lending Disclosure Statement ACKNOWLEDGMENT Robert R. Stubbs, Real Continuing Legal portions of this chapter have been excerpted from Lending in a Changing Environment, by ert R. Stubbs, Real Estate Practices and Procedures Program Materials, Pages 4.1-4.44 Continuing Legal Education in Georgia, 1985, Athens, Georgia. Used by per- Online Companic tanal resour
