Part 1: When it comes to opening escrow and selecting service providers:

• Why is RESPA important?
• Who does the act protect?
• What are the requirements?

Part 2: When working on a closing statement, an escrow officer must determine credits/ debits regarding property taxes and prorate accordingly. Property tax proration will be on the state licensing exam, so it's important to know how to properly calculate property tax prorations. (When calculating the answer always use a 360-day year and a 30-day month for the per diem).

• The annual property taxes are $2,340. What are the per diem taxes?
• The homeowners association dues are $97.50 a month, and theyve already been paid for the current month, which is January. If the transaction closes on January 14 and the buyer is responsible for the day of closing, how much will be credited back to the seller at closing?
• A buyer obtains a new purchase money loan in the amount of $480,000, with an annual interest rate of 6%. If the sale closes on the 22nd of the month, how much prepaid interest will the buyer be charged at closing?
• The sellers loan balance at closing is $83,280. The loans interest rate is 7.5%. If the sale is completed on March 19 and the seller will be charged for the day of closing, how much prorated interest will the seller have to pay at closing?

• The annual property taxes for this fiscal year are $4,212. The seller has paid the first half, but she hasnt paid the second installment. If the sale closes on March 20 and the buyer is responsible for the taxes beginning on the day of closing, how will the taxes appear on the settlement statement?