Description
This course reviews the requirements of the Real Estate Settlement Procedures Act (RESPA), including the disclosure requirements and the anti-kickback provisions, loan servicing standards, and escrow account management.
RESPA has the following four primary purposes:
- Provide pertinent and timely disclosures regarding the nature and costs of real estate settlements for certain federally related mortgage loans
- Prohibit kickbacks and other arrangements that add to the cost of settlement or hide costs
- Provide information about the sale or transfer of servicing
- Regulate management and disclosure of escrow accounts
What You’ll Learn
After completing this course, students will be able to:
- Identify loan transactions that are covered under RESPA and those that are exempt
- Explain the timing and content of application and settlement disclosures, including the homeownership counseling notice, the Affiliated Business Arrangement Notice, and the initial escrow account notice
- Identify RESPA requirements for loan servicers in all aspects of servicing a mortgage loan including, when applicable, escrow account servicing and successors in interest
- Describe activities and business practices prohibited under Section 8 and the consequences of a violation
