Section 1
Legal Foundations
Preview
Preview: Federal Mortgage Related Laws
- 4 of 28 lesson topics
- 1 overview segment
- 3 core concepts
- 2 exam tips
Lesson Topics
- RESPA Section 8 referral prohibition
- Thing of value and agreement or understanding
- Fee splitting and unearned fees
- Bona fide payment for actual goods, facilities, or services
Overview
Federal mortgage law questions test whether you can identify the governing rule before choosing an answer. RESPA and Regulation X deal with settlement-service referrals, unearned fees, servicing, and escrow. TILA and Regulation Z deal with credit cost disclosures, APR, loan-originator compensation, and TRID timing for covered transactions.
Core Concepts
- RESPA Section 8 focuses on referral compensation involving settlement services for federally related mortgage loans.
- A thing of value plus an agreement or understanding for referrals is the usual RESPA clue.
- Bona fide payments for actual goods, facilities, or services may be lawful when reasonably related to value.
Exam Tips
- If a question gives a referral and a thing of value, test RESPA Section 8 before choosing a disclosure answer.
- Do not treat every three-business-day rule as the same rule; identify LE, CD, rescission, or adverse-action timing first.