Finance
RESPA (Real Estate Settlement Procedures Act) applies to Alabama transactions involving:
ACash purchases only
BFederally related mortgage loans✓ Correct
CCommercial property sales
DAll real estate transactions
Explanation
RESPA applies to federally related mortgage loans — which includes most residential mortgage loans in Alabama. It requires disclosure of settlement costs and prohibits kickbacks and referral fees.
Related Alabama Finance Questions
- Private Mortgage Insurance (PMI) is typically required when a borrower's down payment is less than:
- An amortized loan is one in which each payment covers:
- A lender who denies a mortgage application must provide the applicant with:
- When a lender requires a buyer to purchase homeowner's insurance as a condition of the loan, the lender is protecting:
- A reverse mortgage in Alabama is primarily designed for:
- A conventional loan with a down payment of less than 20% typically requires:
- Mortgage fraud is best characterized as:
- The Real Estate Settlement Procedures Act (RESPA) prohibits:
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