A covered non-timeshare mortgage will consummate Thursday, March 12. No legal public holiday or valid emergency waiver applies. What is the latest day the consumer may receive the initial Closing Disclosure and still satisfy the ordinary three-business-day waiting requirement?
Correct Answer
B) Monday 9 March, three business days before consummation
B. Receipt by Monday, March 9 satisfies the ordinary deadline. After Monday receipt, Tuesday, Wednesday and Thursday are the three counted business days. The rule concerns receipt, not merely dispatch on Monday. Scope and exceptions: For this requirement, Saturdays count and Sundays and specified legal public holidays do not; office opening hours are irrelevant. Non-personal delivery has a receipt presumption unless earlier receipt is evidenced. Count delivery and waiting separately. Source: Section 1026.19(f)(1)(ii)–(iii); comments 19(f)(1)(ii)-1 and -2 — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
B. Receipt by Monday, March 9 satisfies the ordinary deadline. After Monday receipt, Tuesday, Wednesday and Thursday are the three counted business days. The rule concerns receipt, not merely dispatch on Monday. Scope and exceptions: For this requirement, Saturdays count and Sundays and specified legal public holidays do not; office opening hours are irrelevant. Non-personal delivery has a receipt presumption unless earlier receipt is evidenced. Count delivery and waiting separately.
Why the Other Options Are Wrong
Option A: Tuesday 10 March, two business days before consummation
Tuesday receipt leaves only two counted days through Thursday.
Option C: Wednesday 11 March, the day before consummation
Wednesday receipt leaves only one counted day.
Option D: Thursday 5 March, seven business days before consummation
Thursday, March 5 is earlier than the latest required receipt date; seven days is not this CD interval.
Exam Tip
Distinguish the date sent from the date received before counting the waiting period.
More Federal Laws Questions
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?
A team member asks about RESPA Kickbacks and Referrals in an investor-delivery review while trying to confirm the rule-based response. Which response should the loan team use?
During a disclosure desk review, the loan team encounters an RESPA Servicing Transfer issue. Which response should avoid a shortcut that would misapply the rule?
A disciplinary-risk review raises a question about TILA APR and finance-charge rules. Which action should the renewal specialist recommend?
An MLO is reviewing procedures for a case where a compliance analyst asks why covered mortgage application data is collected. What is the proper handling?
A consumer complaint response raises a question about GLBA privacy requirements. Which action should the state compliance officer recommend?
Before the team acts on a branch training session, a policy analyst must address RESPA Servicing Transfer Notice. Which response is most defensible?
A training manager is resolving RESPA Referral Fees during an internal audit sample. Which action best fits the rule?
An operations lead is resolving ECOA Prohibited Discrimination Bases during a loan-team coaching session. Which action best fits the rule?
In a file escalation meeting, a disclosure specialist sees facts tied to TILA Closing Disclosure. What should the file reflect?
People Also Study
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A borrower made a large lump-sum payment that brought the actual balance to 80% of the original value years ahead of schedule, and asks in writing for cancellation. What route is she using?
Next Question
A customer-service escalation raises an HMDA Reporting Requirements question for a training manager. What answer should guide the file?