West Virginia Mortgage Law Practice Test

John must provide a closing statement to both the Barkers and Hannah, which must include all of the following information, EXCEPT:

1. A list of all costs and fees

2. Finance charge rate per year

3. Names of servicers to which servicing may be transferred

4. Principal and total of payments

The correct answer is: A list of all costs and fees

The requirement for a closing statement to include a detailed list of all costs and fees is actually a crucial part of the disclosure process during a real estate transaction. This list helps both buyers and sellers to understand the financial implications of the mortgage and ensures transparency regarding all expenses involved, which include things like origination fees, appraisal fees, and other closing costs. The finance charge rate per year is also a critical component of the closing statement that helps borrowers understand the cost of borrowing over time and the total interest they will pay on the loan. Additionally, disclosing the names of servicers to which servicing may be transferred is part of the Mortgage Disclosure Improvement Act (MDIA). It informs borrowers of potential changes in service providers that could affect their payments. Finally, the principal and total of payments provide borrowers with essential information regarding the total amount they will pay over the life of the loan, including principal and interest. Since A is a crucial component that should be included in the closing statement, it is not correct that this would be omitted in the required information provided to the Barkers and Hannah.