Act in good conscience

The Real Estate Settlement and Procedures Act is intended to help consumers in the settlement process and eliminate kickbacks and unnecessary fees. If you don’t understand and follow the provisions of this act, you can wind up in serious trouble. Take this test to gauge your knowledge.

Some questions in life don't have easy answers; however, the ones in this quiz do, and they're all in this magazine.

Each question below corresponds with a technology topic discussed elsewhere in this issue. If you're interested in reading more about a particular type of technology, refer to the page number following each answer for more information.

The answer follows each question, so scroll slowly if you wish to read a question before revealing the answer.

1. True or false? RESPA does not apply to a transaction in which the buyer pays all cash.
   
   
   
   
   
   
   
   
   
   
   
   1. True.
   
   
   
   
   
   
   
   
   
2. True or false? If a consumer discovers a RESPA violation, he may delay or avoid a mortgage transaction.
   
   
   
   
   
   
   
   
   
   
   
   2. False.
   
   
   
   
   
   
   
   
   
3. True or false? All charges on a Good Faith Estimate must be within 10% of the actual cost of the item.
   
   
   
   
   
   
   
   
   
   
   
   3. False.
   
   
   
   
   
   
   
   
   
4. True or false? A “kickback” violation of RESPA will not occur if the agreement regarding the referral is not in writing.
   
   
   
   
   
   
   
   
   
   
   
   4. False.
   
   
   
   
   
   
   
   
   
5. True or false? You can be paid for originating mortgages for a lender as long as you disclose the amount of your referral fee.
   
   
   
   
   
   
   
   
   
   
   
   5. False.

   
   
   
   
   
   
   
   

6. True or false? You can be paid a reasonable amount by a lender for processing services performed related to a loan.
   
   
   
   
   
   
   
   
   
   
   

   6. True.
   
   
   
   
   
   
   
   
   

7. True or false? You can be paid for originating mortgages for a lender if you are an employee of that company and perform duties relating to the loan.
   
   
   
   
   
   
   
   
   
   
   

   7. True.
   

   
   
   
   
   
   
   
   
   
8. Violating RESPA could result in:
   a) one year in jail and a $10,000 fine
   b) civil penalties
   c) both a and b
   
   
   
   
   
   
   
   
   
   
   
   8. c.
   
   
   
   
   
   
   
   
   
9. True or false? RESPA defines a “thing of value” as items costing $10 or more.
   
   
   
   
   
   
   
   
   
   
   
   9. False. There is no minimum value.
   
   
   
   
   
   
   
   
   
   
10. True or false? A settlement provider can
    pay a commission advance before closing.
    
    
    
    
    
    
    
    
    
    10. False.

Illustration © Artville.

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