On 4 May a borrower gives a loan officer his name, his income, his social security number, the property address and the $310,000 loan amount he wants. He has not said what he thinks the property is worth. Has the lender received all six items that constitute an application for the TRID Loan Estimate requirement?
Correct Answer
B) Not yet an application: an estimate of property value is the 6th item
B. The property-value estimate is still missing from the six-item application. The supplied items are identity, income, credit-report identifier, property address and requested loan amount. The requested $310,000 loan is not itself an estimate of the property value. Scope and exceptions: Once all six items are received, requiring extra underwriting documents does not delay this application trigger. Written or electronic submissions and recorded oral applications can qualify. Other laws can define application differently; this answer does not mean no duties exist before the sixth item arrives. Source: Section 1026.2(a)(3)(ii); comment 2(a)(3)-1 — https://www.consumerfinance.gov/rules-policy/regulations/1026/2/
Why This Is the Correct Answer
B. The property-value estimate is still missing from the six-item application. The supplied items are identity, income, credit-report identifier, property address and requested loan amount. The requested $310,000 loan is not itself an estimate of the property value. Scope and exceptions: Once all six items are received, requiring extra underwriting documents does not delay this application trigger. Written or electronic submissions and recorded oral applications can qualify. Other laws can define application differently; this answer does not mean no duties exist before the sixth item arrives.
Why the Other Options Are Wrong
Option A: An application: 5 of the 6 items is enough to start the 3-day clock
Five items do not satisfy this six-item definition.
Option C: An application: the value estimate comes from the appraisal, not the borrower
Waiting for an appraisal is not how the six-item trigger works.
Option D: Not yet an application: a signed 1003 form is what starts the clock
A signed 1003 is not an additional prerequisite under this definition.
Exam Tip
Count the specified information, not forms, signatures or underwriting completeness.
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