10 Questions
What does the lender need to do if the actual charges exceed the estimated charges by more than the allowed amount?
Refund the excess charges to the borrower
When must the lender give the closing disclosure form to the borrower?
At least three business days before closing
What is a characteristic of predatory lending practices according to the text?
Taking advantage of uninformed and vulnerable buyers
What is a requirement for higher-priced loans under federal predatory lending law?
In-person appraisal, including interior, is necessary
Which element is NOT a part of predatory lending practices mentioned in the text?
Loan refinancing assistance
Who do predatory lenders typically target according to the text?
People who aren't able to understand the transaction they're entering into
What is a key restriction related to higher-priced loans under federal predatory lending law?
Prepayment penalties not allowed after first two years
What action must be taken if some charges exceed specific limitations?
The lender must refund the excess charges to the borrower
What is a consequence of waivers at closing according to the content?
Can lead to kickbacks or increased costs for borrowers
What aspect defines predatory lending practices as mentioned in the text?
Focusing on uninformed and vulnerable buyers for profit
Test your knowledge about the Real Estate Settlement Procedures Act with this quiz. Questions cover topics such as eliminating kickbacks, providing borrowers with closing cost information, and disclosure of financing costs. Find out how well you understand RESPA regulations!
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