A borrower's loan is scheduled to close on Friday, but the lender discovers an error in the Closing Disclosure on Thursday that requires a correction. When is the earliest the loan can close?
Correct Answer
C) The following Wednesday
If a corrected Closing Disclosure must be provided, a new 3-business-day waiting period begins. If the corrected CD is provided on Thursday, the waiting period runs Friday, Monday, Tuesday, making Wednesday the earliest possible closing date.
Why This Is the Correct Answer
If a corrected Closing Disclosure must be provided, a new 3-business-day waiting period begins. If the corrected CD is provided on Thursday, the waiting period runs Friday, Monday, Tuesday, making Wednesday the earliest possible closing date.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?
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A borrower is considering paying discount points to reduce their interest rate. Each point costs 1% of the loan amount and reduces the rate by 0.25%. On a $300,000 loan, how much would the borrower pay for 2 discount points?
A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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