Question

RESPA dictates that the "Servicing Disclosure" be given at which of the following times?

1) At application
2) Before closing
3) At closing
4) After closing

Answer 1

RESPA requires the Servicing Disclosure to be given at the time of loan application or within three business days after, making the answer option 1) At application.

Step-by-step explanation:

The Real Estate Settlement Procedures Act (RESPA) requires that a Servicing Disclosure Statement be provided to the borrower at the time of loan application, or within three business days thereafter. This means that the correct answer to the question is: 1) At application. The Servicing Disclosure Statement is important because it informs the borrower whether the lender intends to service the loan or is planning to transfer it to another lender.