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Question 1 of 5

1. Question
A lender requires the borrower to use a settlement service provider selected from a lender-approved pool of providers. At the time the Loan Estimate is issued, the lender has not yet selected the specific provider but maintains a controlled list of approved companies.

Under TILA-RESPA requirements, how may the lender properly disclose this information?
- A) The lender may delay all settlement service disclosures until the Closing Disclosure is issued
- B) The lender must disclose only the highest possible fee for all providers
- C) The lender may provide a written statement identifying the lender-controlled provider list and disclose a range of estimated costs on the Loan Estimate
- D) The lender is prohibited from using lender-approved provider lists
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Question 2 of 5

2. Question
A creditor maintains an approved list of settlement service providers for required title services. The creditor issues a Loan Estimate before selecting the final title company and plans to identify the exact provider later on the Closing Disclosure.

Which statement best reflects disclosure requirements?
- A) The creditor may disclose a range of estimated provider costs on the Loan Estimate and later identify the specific provider and actual cost on the Closing Disclosure
- B) The creditor must identify the exact provider before issuing the Loan Estimate
- C) The creditor may omit title-related fees until closing
- D) The creditor may disclose only the average cost of all providers used during the previous year
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Question 3 of 5

3. Question
A borrower applies for a residential mortgage loan and is permitted to shop for certain settlement services, including pest inspection and survey services. During processing, the lender verbally advises the borrower to “find any provider you want” but never provides a written list of available providers.

During a compliance audit, regulators question whether the lender satisfied TILA-RESPA disclosure requirements.

Which statement best reflects the lender’s obligations?
- A) Verbal instructions satisfy provider disclosure requirements if the borrower is permitted to shop
- B) A separate written list identifying settlement service providers borrowers may select must be provided
- C) Provider lists are required only when affiliated business arrangements exist
- D) Settlement service provider lists are optional for non-government loans
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Question 4 of 5

4. Question
A lender issues a written settlement service provider list for home warranty and survey services. The document contains only one provider for each service and does not disclose estimated fee ranges for the services offered.

A compliance officer reviews the file and determines the disclosure is incomplete.

Why?
- A) The lender must provide at least three providers for each shoppable service and disclose a range of estimated fees
- B) Lenders are prohibited from disclosing estimated settlement service fees
- C) Fee ranges are required only on the Closing Disclosure
- D) Settlement service provider lists apply only to affiliated business arrangements
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Question 5 of 5

5. Question
A creditor permits a borrower to shop for title and pest inspection services but fails to clearly identify which settlement services are required by the creditor versus which services are optional.

During a regulatory examination, auditors determine that the borrower could not reasonably determine which services required lender approval.

Which statement best reflects the 2017 TILA-RESPA Rule requirements?
- A) Creditors are required to identify settlement services they require while allowing consumers to shop for those services
- B) Consumers are prohibited from shopping for lender-required settlement services
- C) Settlement service shopping disclosures are required only for purchase transactions
- D) Creditors are required to approve every settlement service provider selected by the borrower
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