Abuyer is purchasing a house from a seller. the single-family home is subject to an existing 30-year mortgage of $286,500 at a fixed rate of 6%. under the terms of the sales contract, the buyer will assume the seller’s mortgage at 6% interest and pay the federally insured lender’s assumption fee of $100. in addition, the seller will assist the buyer by taking back a purchase-money mortgage in the amount of $25,000 at 8% interest. is this transaction subject to respa?
a. no, because this transaction involves a purchase money mortgage taken back by the seller.
b. no, because the terms of the assumed loan were not changed.
c. yes, because the seller is taking back a purchase money mortgage at an interest rate higher than that charged for the assumed loan.
d. yes, because the lender’s fee on the assumed loan is more than $50.