Key Terms - Chapter 12 Flashcards Preview

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Flashcards in Key Terms - Chapter 12 Deck (12)
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1
Q

Closing Disclosure (CD)

A

A form required by RESPA when closing a residential sale with a federally related loan

2
Q

credit

A

In a closing statement, money to be received or credit given for money or a stated obligation.

3
Q

debit

A

In a closing statement, an expense, money, or charge against the seller or buyer.

4
Q

double entry

A

An amount of money showing on the closing statement for both buyer and seller. It is an amount collected from one party and given to the other party, therefore, a debit to the first party and a credit to the other party.

5
Q

interim interest

A

Interest paid on the loan amount from the date of closing through the end of the closing month inclusive. Typically is prepaid at the time of closing.

6
Q

Loan Estimate (LE)

A

A standard form providing easy comparisons of loan costs that allows the borrower to compare offers from different lenders

7
Q

prorating

A

Dividing certain settlement costs between buyer and seller.

8
Q

Real Estate Settlement Procedures Act (RESPA)

A

Law requiring advance disclosure of settlement costs and other specified information mandating specific closing statement forms and prohibiting kickbacks.

9
Q

settlement

A

The consummation of a real estate contract. Also called closing.

10
Q

single entry

A

An item that appears as a debit or credit on either the buyer’s or seller’s closing statement, but not on both.

11
Q

Truth in Lending Act (TILA)

A

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12
Q

TILA/RESPA Integted Disclosure (TRID)

A

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