RESPA Reg X

RESPA Reg X

1. Section 8

   • Prevents giving and reciving of kick backs and referrals
     • TOW Thing of vale, Offered and or accepted, work done
       • Violators maybe fined up to $10,000 and imprisioned for up to 1 year

2. Section 6

   • Loan Servicing
     • Borrower's who have a complaint must submit in writing
       • Lender has 5 days to respond.If borrower is correct, lender has 20 days to correct the issue.
         • Must retain documentation for 1 year after disclosure date
         • servicers are prohibited from charging a fee for 60 days after notice of an error
     • Servicers must notify consumer no less the 15 days before the effective date. The reciever must inform consumer no less the 15 days after transfer
       • Exemption for small servicers
         • nonprofit entity that services 5000 or fewer loans p.11

3. Section 10

   • Prevents lenders from overcharging escrow accounts
     • borrower must maintain only 1/6th of estimated total disbursements
       • Refunding Any surplus greater then $50 within 30 days
     • Intial escrow statemtent must be delivered 45 days from the settlement
       • Annual escrow statements due within 30 days of completion of accout computation year

4. Allows consumers to obtain information on the costs of closing so that they can shop for settlement services.

5. Protects Consumers from excessive settlement costs and unearned fees

6. Establishes disclosures, policies, and procedures to facilitate timely communications between loan servicers and consumers

   • Madatory Disclosures
     • Loan Estimate
       • Closing Disclosure
         • Settlement Cost Information Booklet
           • Mortgage Servicing Disclosure Statement
             • Affiliated Businsse Arrangement
               • Must disclose at the time of referral
                 • 5 year record rention
           • Due 3 business days after complete loan app
             • Your Home Loan Toolkit: A Step by Step Guide
             • HELOCs Get What You Should Know about Equity Lines of Credit

7. Real Estate Settlement Procedures Act

8. Sham Affiliated Business Arrangements is strickly prohibited

9. Force Placed Insurance

   • must be resonable bases to believe the borrower has failed to maintain hazarad insurance
     • Servicer may not require a borrower to obtain inurance covverage in an amount that exceeds the replacement cost of improvements

10. Delinquencies and Foreclosure

    • Require live contact with the borrower by the 36th day of delinquency
      • Written notice by the 45th day of deliquency