RESPA Section 3500.15(b) sets out three conditions of the controlled business arrangement exception. Which of the following is NOT one of those provisions?
A. Disclosure of relationship
B. Non-required use of the referred entity
C. What is [financially] received from the relationship
D. Performance of core title services by the real estate broker
D. Performance of core title services by the real estate broker
RESPA Section 8(a) prohibits any person from giving or accepting a thing of value for the referral of settlement service business involving a federally related mortgage loan. Which of the following would NOT be considered a thing of value?
A. Incentive
B. Kickback
C. Thank you card
D. Inducement
C. Thank you card
In MOST states, services to be performed by the title agent or agency, to be entitled to receive or retain a significant portion of the title premium, must include the assumption of liability for services rendered. Such core title services include all of the following EXCEPT:
A. Evaluation [examination] of the title search to determine insurability of title
B. Determination of whether underwriting objections have been cleared
C. Issuance of title commitments, policies, and endorsements
D. Preparation of closing documents by an attorney at law
D. Preparation of closing documents by an attorney at law
Under RESPA Statement of Policy 1996-4, if the title insurer provides its agents with ‘part time examiners’ who are under the management control of the insurer, HUD may scrutinize the level of agent compensation from the insurer to determine that:
A. The agent is fully compensated for work performed by the insurer
B. Agent compensation is meaningfully reduced from that given to agents who perform all core title services
C. The agent gets the maximum percentage of title premium and related fees
D. The insurer has hidden the kickback to the agent in something other than premium
B. Agent compensation is meaningfully reduced from that given to agents who perform all core title services
Under RESPA, many of the complaints about sham affiliated business arrangements include that the new entity:
A. Performs little, if any, real settlement services
B. Performs full settlement services in exchange for compensation
C. Is fully staffed and functions like an independent provider
D. Is owned by multiple settlement services providers which is a conflict of interest
A. Performs little, if any, real settlement services
Under RESPA Statement of Policy 1996-4, if a title agent obtains third party services [such as the title search or examination of title] and does not add additional value to the service provided, but increases the charge to the consumer for that service and retains the difference, HUD views the amount that the agent retains as:
A. An unearned fee
B. A bonus or “tip”
C. A permissible fee
D. A core title fee
A. An unearned fee
It is HUD’s enforcement position, under RESPA Statement of Policy 1996-4, that it is difficult to justify the payment of a significant portion of the title insurance risk premium to a title insurance agent who:
A.Performs full core title agent services
B. Fails to perform full core title agent services
C. Fails to perform and assume responsibility for the title examination function
D. Performs full core title agent services and is liable for negligence
C. Fails to perform and assume responsibility for the title examination function
Under RESPA Section 9, no seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company. Any seller who violates Section 9, is liable to the buyer in an amount equal to _____ made for such title insurance:
A. All costs and fees
B. All costs, fees, and penalties
C. Two times all charges
D. Three times all charges
D. Three times all charges
With respect to state laws that are inconsistent with RESPA regulations:
A. RESPA regulations always takes priority
B. State regulations always take priority
C. Whichever is more consumer protective has priority
D. The two cancel each other out, leaving no regulation
C. Whichever is more consumer protective has priority
The Affiliated Business Disclosure Statement must be given to the consumer:
A. Prior to or at the time the referral is made
B. At time of closing
C. One business day in advance of closing
D. In conjunction with issuance of final policies
A. Prior to or at the time the referral is made
On a TRID transaction, the Consumer/Borrower becomes obligated on the loan as of date of:
A. Loan Application
B. Loan Approval
C. Delivery of Loan Estimate
D. Consummation
D. Consummation
Under RESPA, a thing of value includes all of the following EXCEPT:
A. Special or unusual banking terms
B. Services given for free or at special rates
C. Payment for services actually rendered
D. Trips and payment of another person’s expenses
C. Payment for services actually rendered
Under RESPA Statement of Policy 1996-4, evidence that a thing of value is given for referral of business includes all of the following EXCEPT:
A. Title insurer not charging at least its actual cost of producing the title evidence
B. Title insurer charges less for title evidence to be used for a commitment or policy issued on behalf of the title insurer than that charged when title is written on another company’s behalf
C. Title insurer supplies its title agents’ employees or has control over or directs the work of employees for provision of core title services
D. Title agent performs full core title agent services in exchange for a permitted portion of title premium
D. Title agent performs full core title agent services in exchange for a permitted portion of title premium
Section 8 of RESPA permits normal promotional and educational activities that _____ and do not involve the defraying of expenses that would otherwise be incurred by persons in a position to refer settlement service business.
A. Are conditioned on the referral of business
B. Are not conditioned on the referral of business
C. Are subject to marketing sales agreements
D. Are subject to sham affiliated business arrangements
B. Are not conditioned on the referral of business
All of the following transactions continue to be regulated under RESPA subsequent to the October 3, 2015 effective date of the TRID Rule EXCEPT:
A. Home Equity Lines of Credit
B. Reverse Mortgage Loans
C. Home Equity Loans
D. Chattel-Dwelling Loans
C. Home Equity Loans
RESPA Section 3500.14 regarding Section 8 violations prohibits all of the following EXCEPT:
A. Referral fees
B. Portion, split, or percentage of charges except for actual work performed
C. Things of value, kickbacks and unearned fees
D. Payment for products actually furnished
D. Payment for products actually furnished
Disclosure of an affiliated business arrangement must include all of the following EXCEPT:
A. Be in writing and not require use of the referred providers
B. Disclose the nature of relationship between the service provider and the person making the referral
C. Explain ownership and financial interest of such arrangement
D. Provide exact final costs and fees of non-referral providers
D. Provide exact final costs and fees of non-referral providers
Regarding affiliated business arrangements, what of the following factors is NOT included in determining if an AfBA entity is a viable entity and not a sham?
A. Provides substantial services for which it receives a fee and incurs risks and receives rewards of a comparable enterprise operating in the marketplace
B. Performs all substantial services itself or, if contracting out essential functions to parent, affiliated provider, or entity that helped create it, the new entity continues to provide functions that are of value to the settlement process
C. Review of remuneration between new entity and those to whom it may contract out services, to determine whether payment includes a thing of value for referral
D. Business practices of non-settlement related businesses owned by AfBA investors that do not affect or impact the affiliated business arrangement
D. Business practices of non-settlement related businesses owned by AfBA investors that do not affect or impact the affiliated business arrangement
Under RESPA Statement of Policy 1996-4, where title insurers maintain title plants and sell title evidence to their title insurance agents, the title company may charge agents a fee for title evidence that is:
A. Not a disguised referral fee given in exchange for the referral of title business
B. Less than actual cost of the title insurer, so the agent may make a profit on sale
C. Less than actual cost, so the agent may pad the fee and give the extra money to real estate agents and mortgage brokers for the referral of business
D. A thing of value for the referral of business, as long as no one gets caught
A. Not a disguised referral fee given in exchange for the referral of title business
If the referral takes place over the phone, the Affiliated Business Disclosure information must be communicated orally by the person making the referral, with written disclosure made within _____ business days following the phone referral.
A. 2
B. 3
C. 4
D. 5
B. 3
A builder may require use of the builder-owned affiliated title agency under which of the following conditions?”
A. When the builder pays for the owner’s title policy
B. As a condition of sale
C. If the builder pays for granite in the kitchen
D. If the builder holds the mortgage
A. When the builder pays for the owner’s title policy
Regarding affiliated business arrangements, when assessing whether a payment is a return on ownership interest or an inducement for referral of settlement service business, HUD [CFPB] will consider all of the following questions EXCEPT:
A. Has each owner in the new entity made an investment of its own capital?
B. Does any owner in the new entity also hold ownership in any other businesses?
C. Are the dividends, distributions or other payments made in proportion to the ownership interest?
D. Have the owners received an ownership interest based on fair value contribution?
B. Does any owner in the new entity also hold ownership in any other businesses?
Civil penalties for an affiliated business arrangement violation entitle recovery of _____ the settlement charge paid plus reasonable attorney’s fees.
A. 2 times
B. 3 times
C. 4 times
D. 5 times
B. 3 times
Under RESPA Statement of Policy 1996-4, where a title insurer provides its title insurance agent with a pro-forma commitment, typing, or other document preparation services:
A. The agent may still be paid for the provision of those services
B. The agent did not actually perform core title services as defined under 8(c)(1)(B)
C. The agent may bill for and retain the fee for services provided by the title insurer
D. The agent may be paid for such services if the agent pressed the “print” button on their computer to print the commitment schedules prepared by the title insurer
B. The agent did not actually perform core title services as defined under 8(c)(1)(B)
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Florida Title Insurance Practice Exam70
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Florida Title Rule37
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Florida Statues31
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RESPA29
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Gramm-Leach-Bliley Act19
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Industry Ethics4
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Title Insurance 10125
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Forms30
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Title Search & Examination30
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Source of Title30
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Liens and Encumbrances30
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Surveys and Legal Descriptions30
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Settlement Escrow31
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Cybersecurity5
