the escrow act is found in the quizlet

Assess the overall level of knowledge and understanding of regulatory requirements by mortgage lending personnel. By the end of the 15-day period after the credit union sent the reminder notice, did the borrower provide evidence of hazard insurance that complies with the loan contract continuously in place? The borrower did not perform under a loss mitigation agreement? The information request is sent more than one year after either the mortgage loan balance was discharged or the credit union transferred the mortgage loan to another servicer? Making the first foreclosure notice or filing? National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314, Letters to Credit Unions & Other Guidance, Credit Union & Corporate Call Report Data, Property Appraisal and Valuation Equity (PAVE), Real Estate Settlement Procedures Act (Regulation X), (You will be leaving NCUA.gov and accessing a non-NCUA website. John and Jane Vanhorn are buying their first home from the Simpson family. Does the annual escrow statement itemize: Current mortgage payment and portion going to escrow? Unless a small servicer, must keep records that document actions taken regarding a borrower's mortgage loan account until one year after a mortgage loan is discharged or servicing of a mortgage loan is transferred by the servicer to a transferee servicer. A toll-free or collect call telephone number of the present servicer to answer questions about the transfer? The credit union is joining the foreclosure action of a subordinate lienholder? Ensure the written acknowledgement includes all of the following: (. If fees were paid to the credit union or any parties identified, were all fees paid to the broker, affiliate, service provider, or other party for goods or facilities furnished or services performed? A statement that the credit union has received the hazard insurance information that the borrower provided? Did the credit union use different personnel to evaluate the appeal than the personnel who evaluated the borrowers loss mitigation application? (. Definition of an Escrow California Civil Code Section 1057 provides this description of an escrow: "A grant may be deposited by the grantor with a third person, to be delivered on the performance of a condition, and, on delivery by the depositary, it will take effect. 2601, et seq.) If the credit union disposes of its interest in the mortgage and does not service the loan, is the HUD-1 or HUD-1A transferred to the new asset owner with the loan file? Determine if the credit union responds to borrower error notices about the servicing of their mortgage loans in compliance with RESPA. A statement advising that the borrower review additional information provided in the same mailing (if applicable)? If the credit union provided a revised GFE to the applicant due to changed circumstances, determine whether the credit union followed regulatory requirements for issuing a revised GFE due to changed circumstances. 45 days after sending the renewal notice, did the credit union receive evidence that the borrower had purchased hazard insurance coverage? c. Penal Code.d. Conduct an internal review at least once a year to test compliance with the regulation and conformity of a credit unions practices with its policies and procedures. Note: These exam procedures do not apply to small servicers., RESPA applies to federally-related mortgage. of Regulation X. sets out detailed requirements for establishing and maintaining escrow accounts, including acceptable accounting methods that may be used. Note special rule for paying hazard insurance premiums from escrow account, even when borrower is delinquent. If the credit union has received servicing rights, was the borrower notified within 15 days after the effective date of the transfer? Revised GFE may be given when changed circumstances or borrower-requested changes cause charges to increase. Was written acknowledgement provided to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) of the credit union receiving the information request? (, In the event of an appeal, ensure the borrowers time for acceptance was extended to 14 days after the credit union provided a notice of its determination of the appeal under , Ensure the borrower meet any one of these conditions prior to the credit union making any first judicial or non-judicial foreclosure notices or filings: (. Separate written disclosure using the format in Appendix D specifying the nature of the relationship and estimating charges for the referral; No requirement to use any particular provider (except that a lender may chose the attorney, credit reporting agency, and/or real estate appraiser); The only thing of value received other than payments for services actually rendered is a return on an ownership or franchise relationship. Did the acknowledgement state that the application was complete and include a statement that the borrower should consider contacting servicers of any other mortgage loans secured by the same property to discuss loss mitigation options? It requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures about the nature and costs of the real estate settlement process. For borrowers who did not provide hazard insurance information, did the reminder notice: Contain the date of the reminder notice and all of the other information provided in the initial notice? In cases when the right to delivery is waived or the transaction is exempt, is the statement mailed as soon as possible after settlement? (, Ensure the credit union did not charge a fee or require a borrower to make a payment as a condition of responding to an information request. Ensure they are aware that these only apply to loans secured by the borrowers principal residence and not to reverse mortgage loans. Identify a reasonable date by which the borrower must submit the additional information? In the case of affiliated business arrangements, the person making the referral must provide a written disclosure to each person whose business is referred at the time of referral or the time the GFE is given (if the lender makes the referral). Reputation Risk can occur when the credit union incurs fines and penalties because it did not comply with RESPA. A statement encouraging the borrower to contact the credit union? (. The new servicers name, address, and toll-free or collect call telephone number of the transferor servicer? The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Amount of monthly mortgage payment and portion that were placed in escrow; Amount of past years monthly mortgage payment and portion that went into escrow; Total amount paid into escrow during the past computation year; Total amount paid out of escrow account during same period for taxes, insurance, and other charges; Balance in the escrow account at the end of the period; How a surplus, shortage, or deficiency is to be paid/handled; and. Remove all force-placed charges and fees from the borrowers account for the period the coverage overlapped. Jon should not be negotiated the feed do ABC escrow as part of escrow procedures. A statement that requests the borrower to update the hazard insurance information for the borrowers property and that identifies the property by its physical address? When the credit union receives hazard insurance information but does not receive evidence of continuous coverage, did the reminder notice include the following information: A statement requesting that the borrower provide hazard insurance information for the borrowers property and that identifies the property by its physical address? Secondary market transactions (not including table funded transactions). Total amount paid from the escrow account during the past year for taxes, insurance premiums, and other charges? b. dual agency changes to separate agency. Determine whether the credit union has transferred or received mortgage servicing rights. (opens new page). all of the above. If a charge stated on the HUD-1 or HUD-1A exceeds the charges stated on the GFE by more than the permitted tolerance, does the credit union cure the tolerance violation by reimbursing the borrower the amount the tolerance was exceeded at settlement, or by delivering or placing the payment in the mail within 30 calendar days after settlement? In its most basic form, an escrow is a transaction in which one person in a contract with another delivers a written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by such person until the happening of a specified event. Who handles the completion of the transaction and both parties separate paperwork. (opens new page).) (You will be leaving NCUA.gov and accessing a non-NCUA website. Any website the credit union maintains for servicing the loan? When an average charge was listed for a settlement service, was the charge calculated according to the requirements in. These amendments, also known as the Know Before You Owe mortgage disclosure rule, are referred to in this document as the TILA-RESPA Integrated Disclosure Rule or TRID, and are applicable to covered closed-end mortgage loans for which a creditor or mortgage broker receives an application on or after October 3, 2015. The HUD-1 or HUD-1A must be completed according to the instructions in Appendix A (opens new window) A When escrow closes:a. separate agency changes to dual agency. It depends on the type of loan you get, as well as your financial profile. Was the credit union permitted to purchase forced placed insurance for a borrower who had established an escrow account for the payment of hazard insurance under. To cure a technical or inadvertent error on the HUD-1/1A by providing a revised settlement statement to the borrower within 30 calendar days of settlement. Determine whether monthly escrow payments following settlement are within the limits of , Determine whether the credit union provides applicants a list of home ownership counseling agencies within three business days of receiving an application (, Determine whether the credit union obtained the list of home ownership counseling agencies from the CFPBs or HUDs website and that they obtained the list no more than 30 days prior to the time the list was provided to the applicant (, For HELOCs, determine if the credit union complies with either the three business day timeframe or with Regulation Zs timeframe listed in , Determine whether the disclosure form is substantially in conformity with the model disclosure in, Determine that the lender, mortgage broker who anticipates using table funding, or dealer in a first-lien dealer loan provide the servicing disclosure statement to reverse mortgage applicants within three business days after receiving the application. b. Keep documents provided according to 1024.14 (opens new window) Did the credit union not treat as late any payments the borrower sent to the wrong party within 60 days of the transfer? Ensure the credit union did not require the borrower to provide supporting documents as a condition of investigating the alleged error. (, Determine whether the assigned personnel can perform all of the following tasks: (. Full text of Real Estate Settlement Procedures Act (Regulation X) can be found here. Interview credit union personnel to determine whether they understand the required loss mitigation procedures. [Not applicable to small servicers.] For documents or information created on or after January 10, 2014, does the credit union keep the following. A request that the borrower provide the missing information? The rules that govern earnest money deposits in real estate transactions vary from state to state. Number of days before settlement the interest rate must be locked, if applicable; Left hand column on trade-off table completed for loan in the GFE. A request that the borrower promptly provide the credit union with insurance information? A description of the requested insurance information, how the borrower may provide such information, and (if applicable) that the requested information must be in writing? RESPA also prohibits practices such as kickbacks, and limits the use of escrow accounts. Although not specified in Regulation X, keeping other notices and disclosures such as the Servicing Transfer Notice and the Good Faith Estimate is recommended. Investigate, respond to, and make corrections in response to borrowers complaints, including promptly obtaining information from service providers to investigate and if applicable correct errors resulting from actions of service providers? If the credit union received evidence that the borrower had the required hazard insurance coverage in place, did the credit union perform each of the following within 15 days: Refund force-placed insurance premiums charges and fees for the period the coverage overlapped? (, When the credit union owns the property being sold, determine whether it requires that title insurance be purchased from a particular company. Copies of any information or documents the borrower provided to the credit union regarding written error notices or loss mitigation? If an acknowledgment was not given, determine if it was not required for one of the following reasons: The credit union corrected the errors asserted and notified the borrower in writing within five days (excluding legal public holidays, Saturdays, and Sundays) of receiving the error notice; (, The credit union determined that it was not required to respond and provided written notice, with the reason for its decision not to take any action, to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination; (, The error notice related to violations of certain loss mitigation procedures under . In determining time periods for required actions, does the credit union consider a complete loss application received when there is no foreclosure sale scheduled to be more than 90 days before a foreclosure sale? A statement advising that the borrower review additional information provided in the same mailing (if applicable). For borrowers who did not provide hazard insurance information, determine whether the reminder notice: (. If the credit union provided a revised GFE because of changed circumstances, borrower-requested changes, or interest-rate-dependent changes, did it issue a new GFE within three business days of receiving enough information to establish changed circumstances, and did the new GFE reflect only permissible changes? Determine if the credit union submits the required initial and annual escrow account statements to borrowers as applicable, properly administrates escrow accounts, and otherwise complies with requirements and limitations on escrow account arrangements. Upon discovering that additional information or corrected documents were required to complete the application, ensure the credit union does the following: (, Promptly requests the missing information or corrected documents; and. (, Determine whether the credit union provided a written renewal notice to the borrower at least 45 days before assessing any fee or charge. There must be a binding contract between buyer (grantee) and the seller (grantor); and there must be a conditional delivery of transfer instruments and funds to a neutral third party. (opens new window) Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. A statement that the credit union previously purchased force-placed insurance at the borrowers expense because the credit union did not have evidence that the borrower had hazard insurance coverage? Explanation of how any shortage or deficiency will be paid by the borrower? Determine if the credit union complies with RESPAs loss mitigation procedures, as applicable. (, If the credit union offered a loss mitigation option and received the complete application fewer than 90 days before a foreclosure sale but more than 37 days before the sale, ensure the credit union provided the borrower with at least 7 days to accept or reject any offered loss mitigation options after the servicer notified the borrower about the offer. (You will be leaving NCUA.gov and accessing a non-NCUA website. 111203 (July 10, 2010) (Dodd-Frank Act) granted rule-making authority under RESPA to the Consumer Financial Protection Bureau (CFPB). b. This final rule clarifies, revises, or amends provisions regarding force-placed insurance notices, policies and procedures, early intervention, and loss mitigation requirements under Regulation Xs servicing provisions; and prompt crediting and periodic statement requirements under Regulation Zs servicing provisions. The amendments became effective on January 10, 2014. This document should be prepared according to the regulatory requirements. We encourage you to read the NCUA's Did the credit union not charge a fee or require a borrower to make a payment as a condition of responding to an information request? Is the annual escrow statement provided within 30 days of the end of the escrow account computation year? The Escrow Act is found in the:a. (, If a submitted request was overbroad or unduly burdensome, determine if the credit union reasonably identified a valid information request in the submission. Provide accurate information regarding available loss mitigation options from the owner or assignee of the borrowers loan? Keep copy of completed HUD-1 or HUD-1A and related documents (until transfer to new owner or loan or new servicer). Did the credit union provide the borrower with the address in each of the following communications: Any periodic statement or coupon book required under, Did the credit union give the same address for receiving information requests? A report of the data fields for the borrowers account created by the credit unions electronic systems (if applicable)? Providing the requested information and contact information for further assistance? If instructions or confidential, And ABC escrow is a dual agency representing both parties, why are the instructions only known to the Vanhorns, their real estate agent, and ABC escrow? We encourage you to read the NCUA's Either the CFPBs or HUDs website to access homeownership counselors or counseling organizations lists and HUDs toll-free number to access homeownership counselors or counseling organizations. Did the credit union meet one of these conditions when it made any first judicial or non-judicial foreclosure notices or filings: The borrower was more than 120 days delinquent? If the credit union refers borrowers to affiliated settlement service providers, is the Affiliated Business Disclosure statement provided to each borrower according to. Is credit union management aware of the prohibitions against payments or receipt of kickbacks and unearned fees? (, Review escrow accounts for paid off mortgages to determine whether the credit union returned amounts remaining in escrow within 20 days (excluding legal public holidays, Saturdays, and Sundays) after the borrower paid the mortgage loan in full. Provided the borrower with a notice stating the following: Which loss mitigation options (if any) the credit union would offer the borrower (, The amount of time the borrower has to accept or reject an offered loss mitigation option pursuant to , If applicable, that the borrower has the right to appeal a denial of a loan modification option and the time period for making any appeal under , Determine whether the credit union exercised reasonable diligence in obtaining documents and information to complete the application (, If the credit union offered the borrower a short term forbearance plan based upon information contained in an incomplete loss mitigation application, and the borrower is performing under the plan, ensure the credit union refrained from any one of the following: (.