An MLO receives an application from a borrower on Tuesday at 4 PM. The borrower emails additional required documentation on Thursday at 10 AM, making the application complete. When must the Loan Estimate be delivered?
Correct Answer
C) By Monday at 10 AM (3 business days from when application became complete)
Under TRID regulations (12 CFR 1026.19(e)), the 3-business-day period for delivering the Loan Estimate begins when the creditor receives the last piece of information needed to make the application complete. Since the application became complete on Thursday at 10 AM, the 3-business-day period starts then. Counting business days: Friday (day 1), Monday (day 2), Tuesday (day 3), so delivery must occur by Monday at 10 AM.
Why This Is the Correct Answer
Under TRID regulations (12 CFR 1026.19(e)), the 3-business-day period for delivering the Loan Estimate begins when the creditor receives the last piece of information needed to make the application complete. Since the application became complete on Thursday at 10 AM, the 3-business-day period starts then. Counting business days: Friday (day 1), Monday (day 2), Tuesday (day 3), so delivery must occur by Monday at 10 AM.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
A borrower receives a pre-qualification for $300,000 but later applies for a $350,000 loan. The MLO discovers the borrower has been making monthly payments on a student loan that wasn't disclosed during pre-qualification. How does this impact the application process?
Next Question
A mortgage lender pays MLOs a standard commission rate but offers a temporary 'promotion period' where MLOs can earn double commissions on all loans closed within a specific 30-day period to boost monthly production. This promotional compensation: