What is a servicer advance?
Servicer Advances means, with respect to a Mortgage Loan, servicing advances for delinquent principal, interest, tax or insurance payments or for property protection expenses or other servicing advances of any type.
Which fee is a lender prohibited from collecting?
Which fee is a mortgage loan originator forbidden from collecting? higher-priced loan. 3.5%. Which advertising practice is prohibited by TILA?
What types of fees and conditions are prohibited under respa?
Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.
What is it called when a broker takes advantage of the borrower by charging higher rates or fees than is necessary or warranted?
Predatory Lending You just studied 69 terms!
What is a compensatory fee?
Compensatory fee exposure equals the actual number of days from the DDLPI to foreclosure sale minus the state foreclosure timeline (DDLPI to sale) minus any allowable delay days. Page 3. October 2020. Freddie Mac Learning.
What is excess servicing spread?
If there is a portion of a mortgage servicing spread that exceeds what could be deemed reasonable compensation for services performed, this is called the excess servicing spread and would represent a continuing investment in the interest portion of an underlying mortgage pool.
Which law requires a loan servicer to notify a borrower before the servicing of that loan is transferred to someone else?
Besides the Annual Escrow Statement, RESPA requires a Servicing Transfer Statement to be sent to the consumer if the loan servicer sells or assigns the servicing rights to a borrower’s loan to another loan servicer. The loan servicer must notify the borrower 15 days before the effective date of the loan transfer.
Can I sue my lender for not closing on time?
As mentioned above, if your mortgage lender commits negligence, you may sue your mortgage lender. Examples of this can include where they negligently fail to include terms in the loan agreement that were agreed to by both parties, or if they breach their fiduciary duties.
What is illegal under RESPA?
It is illegal under RESPA for anyone to pay or receive a fee, kickback or anything of value because they agree to refer settlement service business to a particular person or organization. For example, your mortgage lender may not pay your real estate broker $250 for referring you to the lender.
What is RESPA violation?
A RESPA violation occurs when a title company has a financial interest (or ownership) in a real estate transaction where a buyer’s loan is “federally insured.” RESPA is a consumer protection law created to make sure that buyers of residential properties of one to four family units are informed in detailed writing …
Is predatory mortgage lending legal?
Legal Protections Federal laws protect consumers against predatory lenders. Chief among them is the Equal Credit Opportunity Act (ECOA). This law makes it illegal for a lender to impose a higher interest rate or higher fees based on a person’s race, color, religion, sex, age, marital status or national origin.
What are servicing rights?
Servicing Rights means rights of any Person, to administer, service or subservice, the Purchased Assets or to possess related Servicing Records.