Question

Mishandling and/or improperly managing a borrower’s funds is a practice prohibited by:___.

Answer 1

Mishandling and/or improperly managing a borrower’s funds is a practice prohibited by RESPA

• The Real Estate Settlement Procedures Act (RESPA) gives consumers more information about settlement expenses and lowers closing costs by doing away with kickbacks and referral fees.
• The RESPA Act was ratified in December 1974 and went into force on June 20 of the following year. RESPA bans sellers from requiring title insurance firms and forbids loan servicers from requesting unreasonably large escrow accounts.
• When bribes or other unethical activities took place during the settlement process, a plaintiff has up to one year to file a case to enforce violations. Mortgage loans for residential properties with one to four families are covered by the RESPA Act.
• The majority of these are loans for purchases, refinances, assumptions, loans for property improvements, and equity lines of credit.

Learn more about RESPA here brainly.com/question/28202570

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