The Real Estate Settlement Procedures Act (RESPA) prohibits:
Why Kickbacks and unearned fees in the settlement process Is Correct
Answer B: Kickbacks and unearned fees in the settlement process
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related Alabama Questions
- Under the Real Estate Settlement Procedures Act (RESPA), kickbacks between settlement service providers are:Finance
- RESPA (Real Estate Settlement Procedures Act) applies to Alabama transactions involving:Finance
- A RESPA violation occurs when a settlement service provider receives or gives a 'kickback' or unearned fee. Which statement is CORRECT?Escrow & Title
- A seller accepts an offer of $310,000 on their home. The seller's existing mortgage balance is $195,000. Closing costs are $8,000, and the real estate commission is 6%. How much does the seller net from the sale?Real Estate Math
- A buyer's closing costs that are paid 'in advance' at closing include:Finance
- A lender's underwriting process for a mortgage typically evaluates which of the following 'three C's'?Finance
Key Terms to Know
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →