The Real Estate Settlement Procedures Act (RESPA) prohibits:
Why Kickbacks and unearned fees between settlement service providers Is Correct
Answer B: Kickbacks and unearned fees between settlement service providers
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
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees 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.
People Also Study
Related California Questions
- RESPA (Real Estate Settlement Procedures Act) requires lenders to provide buyers with a Closing Disclosure at least how many business days before closing?Escrow & Title
- The federally mandated disclosure that shows the estimated loan terms and closing costs is called the:Finance
- The Real Estate Settlement Procedures Act (RESPA) prohibits which of the following in residential mortgage transactions?Finance
- What is the purpose of RESPA (Real Estate Settlement Procedures Act)?Finance
- The California Agency Disclosure law (Civil Code §2079) requires an agent to provide the Agency Disclosure form to buyers and sellers at what point in the transaction?Agency
- A lender charges 2 discount points and a 1% origination fee on a $350,000 loan. What is the total amount the borrower pays in points and origination fees at closing?Real Estate Math
- Under the Agency Disclosure requirements of California Civil Code Section 2079, a listing agent must provide the agency disclosure form to a seller:DRE & Licensing
- Which document provides a borrower with a standardized breakdown of estimated closing costs within 3 business days of a loan application?Finance
Key Terms to Know
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees 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.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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.
Math Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →