The correct answer is (B). Choice (B) is true, but if a state has a lower requirement, the lender cannot keep more than that lesser amount in escrow accounts. Choice (A) is incorrect because RESPA regulates escrow accounts. Choice (C) is incorrect because RESPA does not require that lenders establish and maintain escrow accounts. Choice (D) is incorrect.
The correct answer is (A). Choice (A) is incorrect. The broker may suggest home inspectors and other contractors, but the buyer hires them. Choices (B), (C), and (D) are duties that brokers carry out, so they are incorrect answers to the question.
The correct answer is (C). $37,500 ÷ $329,000 = 0.114 = 11.4%
The correct answer is (D). Choice (A) is the initial study of a site by reviewing the site’s history. Choice (B) involves sampling of materials from the site. Choice (C) is the cleanup stage.
The correct answer is (A). HPA regulates private mortgage insurance. In addition to choice (A), a residential mortgage transaction according to HPA is one that generates a mortgage or deed of trust and whose purpose is to finance the acquisition, construction, or refinancing of the borrower’s primary residence. Choice (B) is a dwelling that is covered under the Fair Housing Act, but not under HPA. Choice (C) is incorrect because VA-guaranteed and FHA-insured mortgages are not covered under HPA. Choice (D) is incorrect because HPA regulates residential mortgages that are ARMs also.
The correct answer is (C). Choices (A) and (D) are not variances, but uses. Choice (A) is a use that existed prior to the zoning that now prohibits it. Choice (D) is the addition of a structure to a property. Choice (B) is a variance that permits a larger building on a property than the property is zoned for.
The correct answer is (B). Choices (A), (C), and (D) are all homebuyers’ rights under RESPA, so they are incorrect answers to the question. Choice (B) is not true in regard to RESPA or any government regulation, and so is the correct answer to the question. However, RESPA does require that a mortgagee notify a mortgagor if the company transfers the servicing rights for his or her loan to another servicer. This is the Servicing Transfer Statement.
The correct answer is (B). The amount of seller-assist for FHA-insured loans dropped from 6 percent, choice (C), to 3 percent. Choice (A) is the new initial insurance premium that borrowers who get an FHAinsured loan must pay. Choice (D) is a distracter.
The correct answer is (C). The name of the buyer who is the person or persons taking out the mortgage and note must be included on the note, but not the name of the seller of the property. Choices (A), (B), and (D) are all typical pieces of information that are found in a note, and they are, therefore, incorrect answers to the question.
The correct answer is (D). Choice (A) is incorrect; an EEM can be used to buy a 1- and 2-unit residence, but not a condo. Choices (B) and (C) are incorrect because the improvements may not be more than $4,000 or 5 percent of the value of the property, whichever is greater.
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