Question

Under the provisions of the real estate settlement procedures act, which of the following is not a violation?

1) Failure to provide a good faith estimate of closing costs
2) Requiring the use of a specific title insurance company
3) Charging excessive fees for settlement services
4) Providing the borrower with a copy of the HUD-1 settlement statement

Answer 1

Requiring the use of a specific title insurance company is not a violation under the Real Estate Settlement Procedures Act (RESPA). The other options listed in the question are violations of RESPA.

Step-by-step explanation:

Under the provisions of the Real Estate Settlement Procedures Act (RESPA), requiring the use of a specific title insurance company is not a violation. However, the other options listed in the question are violations of RESPA:

1. Failure to provide a good faith estimate of closing costs is a violation of RESPA. Lenders are required to provide borrowers with an estimate of the closing costs involved in a real estate transaction.
2. Charging excessive fees for settlement services is also a violation of RESPA. RESPA prohibits the charging of fees that are not reasonably related to the services provided.
3. Providing the borrower with a copy of the HUD-1 settlement statement is a requirement under RESPA. The HUD-1 settlement statement provides a detailed breakdown of the costs and fees associated with the real estate transaction.