A caller supplies her name, income of $96,000, Social Security number to obtain a credit report, property address, estimated value of $410,000, and requested loan amount of $328,000. Has the lender received all six TRID application items that start the initial Loan Estimate clock?
Correct Answer
B) An application: all 6 pieces are in, so the 3-business-day clock runs
B. The six required application items have been received. The facts provide the consumer’s identity, income, credit-report identifier, property address, estimated value and requested loan amount. Additional underwriting work does not postpone this application trigger. Scope and exceptions: For a covered transaction, the initial delivery or mailing deadline is three business days, subject to applicable exceptions such as timely denial or withdrawal. This is not a statement that underwriting is complete. Source: 1026.2(a)(3)(ii); official interpretation 2(a)(3)-1 — https://www.consumerfinance.gov/rules-policy/regulations/1026/2/ 1026.19(e)(1)(iii); official interpretation 19(e)(1)(iii)-3 — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
B. The six required application items have been received. The facts provide the consumer’s identity, income, credit-report identifier, property address, estimated value and requested loan amount. Additional underwriting work does not postpone this application trigger. Scope and exceptions: For a covered transaction, the initial delivery or mailing deadline is three business days, subject to applicable exceptions such as timely denial or withdrawal. This is not a statement that underwriting is complete.
Why the Other Options Are Wrong
Option A: An application only once she has paid a fee beyond the credit report
A fee payment is not one of the six items.
Option C: Not an application until she signs the intent to proceed within 10 days
A later intent-to-proceed step is not an application prerequisite.
Option D: Not an application until the lender pulls its own credit report on her
Possessing information to obtain the report is distinct from having already pulled it.
Exam Tip
An application trigger is not the same as a fully verified underwriting file.
More Origination Questions
Before the team acts on a servicing handoff check, a closing coordinator must address Asset Verification and Reserves. Which response is most defensible?
An MLO is reviewing procedures for a case where a cost changes after the Closing Disclosure has already been provided. What is the proper handling?
During a post-application update, a quality-control reviewer encounters a Credit Analysis and Evaluation issue. Which response should avoid a shortcut that would misapply the rule?
A construction-to-permanent loan will disburse in 5 draws over 11 months before the permanent phase begins. Which Regulation Z appendix provides a disclosure method for multiple-advance construction transactions?
Before closing, the team discovers that a borrower asks which upfront charge can be collected before intent to proceed. What is the safest compliant answer?
A construction loan agreement allows advances only after documented completion of specified work. A builder requests the next draw, but no completion evidence has been provided. What should occur?
Before releasing the final construction draw, which combination most directly supports project completion and clear collateral?
A construction-to-permanent loan will convert to a substantially higher fully amortizing payment. Which payment is especially important when assessing the borrower's long-term repayment capacity?
A construction-to-permanent note states that conversion requires completion, a certificate of occupancy, and no unresolved liens. Construction is finished, but a mechanic's lien remains. What should happen?
A branch manager asks about a loan file because a processor wants to omit known monthly obligations from underwriting. What should happen?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A quality-control reviewer flags a case because a HELOC will provide funds for the down payment on the same dwelling. What correction is appropriate?
Next Question
Before the team acts on a production meeting, a licensing coordinator must address TRID Loan Estimate Requirements. Which response is most defensible?