Exam 16: Closing the Deal

Which of the following would not be legal conduct by an escrow agent toward a real estate agent who brought a commercial property closing to her agency?

A valid escrow requires the use of an independent party.

For what period of time must the lender hold the terms of the GFE for the borrower?

For an escrow to be created, the seller must deposit the deed.

RESPA prohibits accepting kickbacks for business referrals.

​Lowy was to purchase an apartment building from Pecora Developers. After entering into a purchase contract, the parties executed escrow instructions with Nash Escrow acting as closing agent. Both the contract and the instructions provided that Pecora was to complete a wall around the parking lot before closing could take place. On the day of closing, 30 feet of the wall had yet to be finished. Nash, upon urging and assurance from Pecora that the wall would be finished by day's end, closed the transaction. The wall was never completed and Lowy has brought suit against Nash. What result?

POC costs need not be listed in the USS.

RESPA specifies percentage ranges for total good faith estimates, and estimates exceeding those ranges are violations.

Michael Reaburn sells homeowners' insurance policies. His father is a developer. His father refers all home buyers in his subdivisions to Michael for insurance. Michael then pays his father a commission which he includes as a cost for the escrow company to collect from the buyers at closing.

There are no criminal penalties for violations of RESPA deposit requirements.

The Yield Spread Premium (YSP) is:

Richard and Beth Kimball purchased a condominium for $280,000. The received a GFE with total closing costs of $8,200. When they arrived on the day of closing they were told that there closing costs would be $9,100 because of errors in their loan origination fees and computation of property taxes. Which of the following is a true statement?

POC is an acronym for "paid on credit."

All advance disclosure costs for consumer loans carry a zero tolerance for error.

Jenna and Todd Alder are closing on their home. Their GFE disclosure put their closing costs at $4,200. When they arrive for their closing, the escrow agent explains that their closing costs will be $5,800. Which of the following are important in making the determination of whether closing costs of a RESPA-covered loan violated RESPA?

The escrow agent has discretionary authority on the escrow instructions.

Which of the following could an escrow agent give to a real estate agent who brought a residential property closing to her agency?

The GFE does not require disclosure of loan cost comparisons.

Penalties for receiving kickbacks under RESPA is a fine of $20,000, two years in prison, or both.

​Dearborn paid United Financial Mortgage $100 rent for every closing that it conducted at United's office that involved United as a lender. Dearborn paid $300 rent for every closing that involved another lender. Is this a RESPA violation?