Federal mortgage-related laws
RESPA questions test two things: what you may not pay or receive for referrals, and the servicing and escrow deadlines a servicer must meet. Expect scenario questions about real estate agents, title companies and escrow math.
Federal mortgage-related laws6 min read9 sections
RESPA is the oldest consumer protection statute on the federal law section of the test and the one most tied to everyday MLO relationships. Questions rarely ask you to recite the statute; they describe a lunch, a desk rental or a referral arrangement and ask whether it is legal. A second group of questions tests servicing deadlines: escrow, transfers, errors and loss mitigation.
Regulation X (12 CFR Part 1024) implements RESPA. Since July 21, 2011 the CFPB writes and enforces it; the TILA-RESPA integrated disclosures moved the Good Faith Estimate and HUD-1 into Regulation Z for most loans (as at 11 Oct 2026).
RESPA applies to federally related mortgage loans: loans secured by a first or subordinate lien on one- to four-family residential property made by lenders that are federally regulated or insured, or that are intended to be sold to Fannie Mae, Freddie Mac or Ginnie Mae (12 CFR 1024.2(b)). That is almost every residential loan an MLO touches.
| Covered | Exempt (12 CFR 1024.5(b)) |
|---|---|
| Purchase loans on 1-4 units, including second homes | Business, commercial or agricultural purpose credit |
| Refinances, including cash-out | Temporary financing such as a construction-only loan (unless convertible or two years or longer) |
| Home equity loans and HELOCs | Vacant land (unless a dwelling will be built within two years with loan proceeds) |
| Reverse mortgages (still use the GFE and HUD-1) | Assumptions without lender approval; secondary market sales |
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