In a TRID transaction, assume no listed change makes the APR inaccurate, no prepayment penalty is added and no valid waiver applies. Which pre-consummation change by itself triggers a corrected Closing Disclosure and a new three-business-day waiting period?
Correct Answer
D) The disclosed loan product changes from fixed rate to adjustable rate
D. The disclosed change from fixed to adjustable rate triggers the new wait. A changed loan product is an independent trigger under section 1026.19(f)(2)(ii). The consumer must receive the corrected disclosure at least three business days before consummation. Scope and exceptions: Other changes require corrected disclosures when disclosed information becomes inaccurate. A vesting change may separately require title or underwriting review; absence of a TRID restart does not guarantee closing can proceed. Source: Section 1026.19(f)(2)(i)–(ii); comment 19(f)(2)(ii)-1 — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
D. The disclosed change from fixed to adjustable rate triggers the new wait. A changed loan product is an independent trigger under section 1026.19(f)(2)(ii). The consumer must receive the corrected disclosure at least three business days before consummation. Scope and exceptions: Other changes require corrected disclosures when disclosed information becomes inaccurate. A vesting change may separately require title or underwriting review; absence of a TRID restart does not guarantee closing can proceed.
Why the Other Options Are Wrong
Option A: The homeowner insurance premium rises by $240 over the coming year
Under the assumptions, a premium change alone is not a listed restart trigger.
Option B: The seller agrees to contribute another $1,500 toward the closing costs
A seller credit alone is not a listed restart trigger.
Option C: The borrower moves the title vesting from sole ownership into a trust
A vesting change alone is not one of the three listed triggers.
Exam Tip
Separate disclosure corrections, waiting-period triggers and other closing conditions.
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