Now more than ever you need to be careful with money.
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 for 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.
Question 4
How many counseling agencies must be provided on the
Homeownership Counseling List?
5
10
20
8
Consistent with §?1024.20(a)(1), lenders comply with the
Homeownership 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.
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
proprietorships.
An individual 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
yearsYou should have checked this.
True only if it was a portfolio loan.
True, but only if the individual still maintains an open
active account with the company.
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 storeowner 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.
An oral communication is an electronic record:
None of the above
As long as it is recorded.
Never
Always
Oral communications or a recording of an oral communication
shall not qualify as an electronic record.
Question 2
Prior to obtaining their consent, financial institutions
must provide the consumer, a clear and conspicuous statement informing the
consumer of certain disclosures, which is not required?
Informing consumer whether the consent applies only to the
particular transaction that triggered the disclosure or to identified categories
of records that may be provided during the course of the parties' relationship;
Informing the consumer how the consumer may not request a
paper copy of a record and whether a fee will be charged if they do.
Informing the consumer of any right or option to have the
record provided or made available on paper or in a non-electronic form, and the
right to withdraw consent, including any conditions, consequences, and fees in
the event of such withdrawal;
Informing consumer of the procedures the consumer must use
to withdraw consent and to update information needed to contact the consumer
electronically
Prior to obtaining their consent, financial institutions
must provide the consumer, a clear and conspicuous statement informing the
consumer of the following: Any right or option to have the record provided or
made available on paper or in a non-electronic form, and the right to withdraw
consent, including any conditions, consequences, and fees in the event of such
withdrawal; Whether the consent applies only to the particular transaction that
triggered the disclosure or to identified categories of records that may be
provided during the course of the parties' relationship; Describing the
procedures the consumer must use to withdraw consent and to update information
needed to contact the consumer electronically; and Informing the consumer how
the consumer may nonetheless request a paper copy of a record and whether any
fee will be charged for that copy.
Question 3
Prior to consenting to the use of an electronic record, a
consumer must:
Obtain written consent that consumer has hardware and
software required to access electronic documents
Verify that consumer has hardware and software capable of
receiving electronic documents.You shouldn't have checked this.
Be provided with a statement of the hardware and software
requirements for access to and retention of electronic records.You should have
checked this.
All of the above
Prior to consenting to the use of an electronic record, a
consumer must be provided with a statement of the hardware and software
requirements for access to and retention of electronic records. If the consumer
consents electronically, or confirms his or her consent electronically, it must
be in a manner that reasonably demonstrates the consumer can access information
in the electronic form that will be used to provide the information that is the
subject of the consent.
Question 4
Privacy notices can be delivered to customers
electronically?
Only with consent from the customer, disclosure of certain
terms, and a signed waiver
Only with consent from customer and disclosure of certain
terms
Only with consent from customer
Any time
Information required by law, to be in writing, can be made
available electronically to a consumer only if he or she affirmatively consents
to receive the information electronically and the company clearly and
conspicuously discloses specified information to the consumer before obtaining
his or her consent.
