Terminology/Acromym
Covered/Exempt
Penalties
Disclosures
MARS
100
A settlement service provider referred by a lender or mortgage banker and in which the entity has at least 1% ownership interest in the referred company?
What is Affiliated Business?
100
RESPA (applies/does not apply) to federally regulated mortgage loans that are secured by a first or subordinated lien on a residential property
Applies
100
Violations under this section (relating to referal fees) can result in fines of up to $10,000 and up to 1 year in prison
What is Violations under Section 8?
100
This document is the initial disclosure of the estimated settlement costs of a mortgage loan and is due to the consumer within 3 business days of application
What is the Good Faith Estimate (GFE)?
100
Effectively bans a specific service type provider from collecting fees prior to providing a result and requires the proper disclosure of services. Which type of providers does this Act regulate?
What are Mortgage Assistance Relief Service Providers?
200
The billing, accepting, and recording payments, issuing late payment notices, and managing of escrow accounts for a mortgage loan.
What is Servicing?
200
Loans of 25 acres or more
What is Exempt?
200
A violation in this section can result in the buyer suing for up to 3 times the amount paid for title insurance
What is Section 9?
200
A disclosure that must be given to the consumer if the lender has recommended an affiliated business for settlement services. It is due at the time of the referral.
What is the Affiliated Business Arrangement (ABA, or AfBA)?
200
Who is exempt from MARS if they meet 3 specific conditions?
Who are Attorneys?
300
The point, also known as closing, when all documents related to the mortgage loan have been signed. AKA the process of executing legally binding documents regarding a lien on a property.
What is Settlement?
300
1-4 family units, individual condos, cooperatives, mobile homes, and trailers if used as a residence.
What is Covered?
300
The servicer is liable for actual damages and up to $1,000 in additional damages if they violate this section. If it is a class action suit, penalties can be up to $1,000 per member with total damages not exceeding $500,000 (or 1% of the servicer's net worth)
What is Section 6?
300
The HUD-1 and the HUD-1A are used for which types of transactions, respectively?
What is Purchase(HUD-1) and Refinance(HUD-1A)?
300
All contracts, disclosures, and telephone recordings must be kept for this long
What is 2 years?
400
The sharing of fees by loan originators or settlement service providers
What is Fee Splitting?
400
Loans sold in the secondary market to someone other than Fannie Mae, Freddie Mac, or other non-federally-regulated entities.
What is Exempt?
400
The fine for an intentional violation by a servicer with regard to escrow accounts
What is $110 per violation with no limit for multiple infractions?
400
This document explains the settlement process and advises borrowers they have the right to negotiate loan terms, reviews the protections of RESPA, and warns borrowers that the use of false information can lead to loss of home, credit damage, and criminal prosecution for fraud.
What is the HUD's Settlement Cost Booklet?
400
This entity helps the consumer by saving the consumer's property from foreclosure or repossession, obtaining forebearance, helping with loan modifications.
What are Mortgage Assistance Relief Services covered under Regulation O (MARS)?
500
A loan is created to cover the construction phase. The entire amount of the loan will be due in a short time frame.
What is Interim Financing?
500
ABC loans that are exempt from RESPA
What is Agriculture, Business, and Construction?
500
The penalty for failure to submit an initial escrow statement by a servicer
What is $75 civil penalty per violation with a $130,000 limit in a 12 month period?
500
This disclosure advises borrowers whether their loan can be sold, assigned, or transferred for servicing during the length of the loan.
What is the Mortgage Servicing Disclosure Statement (MSDS)?
500
This statement must be made if a mortgage relief service provider if it tells a consumer to stop paying their mortgage:
What is "If you stop paying your mortgage, you could lose your home and damage your credit ranking."
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