Under RESPA, what may a real estate professional give to a colleague who refers real estate settlement service business?
A thing of value
A kickback
A thank you **
A fee
RESPA prohibits any person from giving or receiving a fee, kickback, or "a thing of value" for referring business to a settlement service provider, or SSP, such as a mortgage banker, mortgage broker, title company, or title agent. Saying thank you is not considered a thing of value for purposes of the Act.
Question 2
Which of the following is not necessary in order to show that a section 8 violation has occurred.
Showing that payment was made foe work not performed
A payment for the referral of services is offered
A payment for the referral of services is accepted.
proving that applicant ends up being charged more for the service. ***
There is no direct proof of customer harm necessary to prove a Section 8 violation. "The fact that the transfer of the thing of value does not result in an increase in any charge made by the person giving the thing of value is irrelevant in determining whether the act is prohibited."
Question 3
The Homeownership Counseling List must be obtained no later than ___ days prior to the time the list is provided to the applicant?
30 ***
60
45
10
The list must also be obtained no earlier than thirty (30) days prior to the time the list is provided to the applicant. In other words, it cannot be an old list.
Score: 100%
Question 4
How many counseling agencies must be provided on the Home ownership Counseling List?
5
10 ***
20
8
Consistent with §?1024.20(a)(1), lenders comply with the Home ownership Counseling List requirement when they provide a list of ten HUD-approved housing counseling agencies.
Question 5
RESPA rules do NOT cover this type of transaction:
Purchase of a condominium with a Federal Housing Administration mortgage
Purchase of a single-family home with a Veteran's Administration loan
Purchase of a two-flat that the owners plan to live in and rent out the other unit financed with a conventional loan
Purchase of a small warehouse financed with a Small Business Administration loan ***
RESPA's coverage is limited to transactions involving a federally-related mortgage with a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of one to four families. This includes any loan that is used to prepay or pay off an existing loan secured by the same property. Properties used for business purposes are not covered by RESPA.
"Customer" means:
Someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative, who have a continuing relationship with a financial institution.You correctly checked this.
Someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative. The term "consumer" does not apply to commercial clients, like sole proprietorship.
An indivuadal that has not yet applied for a line of credit
Someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative, including business clients
A Consumer is someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative. Customers are a subclass of consumers who have a continuing relationship with a financial institution. It's the nature of the relationship - not how long it lasts - that defines a customer.
Question 2
The term "nonpublic personal information" means:
Information provided by a consumer to a financial institution
All of the above. ***
Information otherwise obtained by the financial institution
Information resulting from any transaction with the consumer or any service performed for the consumer
The Privacy Rule protects a consumer's "nonpublic personal information" (NPI). NPI is any "personally identifiable financial information" that a financial institution collects about an individual in connection with providing a financial product or service, unless that information is otherwise "publicly available."
Question 3
The disclosure of the privacy policy must be:
Provided to consumers in writing or electronic form ***
Posted on the wall at the financial institution
Given to consumer or customer upon request
Verbally given to the consumer or customer
Financial institutions must give their customers - and in some cases their consumers - a "clear and conspicuous" written notice describing their privacy policies and practices.
Question 4
Financial institutions are required to send annual privacy notices to individuals who have paid off their loan
False, the notice is not annual
True, but only if the account was paid in full less than 3 years no
True, but only if the individual still maintains an open active account with the company no
A former customer "has obtained" a financial product or service from a financial institution but no longer has a continuing relationship with it. For purposes of a company's obligations under the Privacy Rule, a former customer is considered to be a consumer.
Question 5
The GLB applies to:
A retailer that offers credit to consumers by issuing its own credit card
All of the above
A retailer that lets some consumer make payments through an occasional lay-away plan.
A store owner who runs a tab for customers
The Privacy Rule applies to businesses that are "significantly engaged" in "financial activities" as described in section 4(k) of the Bank Holding Company Act.
