A Closing Disclosure previously showed a 6.412% APR. Before consummation, the creditor determines that the disclosed APR has become inaccurate under the applicable Regulation Z accuracy rules and that the correct APR is 6.680%. No valid emergency waiver applies. What corrected-disclosure waiting period is required?
Correct Answer
A) A new 3-business-day wait runs: an inaccurate APR is 1 of the 3 triggers
A. The consumer must receive the corrected disclosure at least three business days before consummation. The revised premise expressly establishes an APR inaccuracy under the applicable rule. This triggers the corrected Closing Disclosure waiting period, rather than the initial Loan Estimate interval. Scope and exceptions: Not every numerical APR change triggers a new wait. Accuracy must be determined under the applicable rules; receipt timing and valid waiver requirements are separate questions. Source: 1026.19(f)(2)(ii)(A); comment 19(f)(2)(ii)-1 — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
A. The consumer must receive the corrected disclosure at least three business days before consummation. The revised premise expressly establishes an APR inaccuracy under the applicable rule. This triggers the corrected Closing Disclosure waiting period, rather than the initial Loan Estimate interval. Scope and exceptions: Not every numerical APR change triggers a new wait. Accuracy must be determined under the applicable rules; receipt timing and valid waiver requirements are separate questions.
Why the Other Options Are Wrong
Option B: No action is needed while the APR stays within 0.5 points of the original
It substitutes an unsupported universal 0.5-point threshold.
Option C: A corrected disclosure at the table is enough, since the rate did not change
Closing-table correction is insufficient for this specified trigger.
Option D: A new 7-business-day wait runs, matching the loan estimate requirement
Seven business days is not this corrected-disclosure period.
Exam Tip
First establish regulatory inaccuracy, then apply the corrected-disclosure clock.
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