A team member asks about TILA TRID Timing Requirements in a consumer complaint triage while trying to resolve the issue before the file moves forward. Which response should the file reviewer use?
Correct Answer
C) Provide the Loan Estimate within three business days
Why this is correct: Under the TRID rule, a creditor must provide a Loan Estimate to the consumer within three business days after receiving the consumer's application for a covered mortgage loan. This is a fundamental timing trigger. The correct action for a file reviewer is to ensure this requirement was met: the Loan Estimate was provided within three business days of application. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is never compliant. "Use the escrow analysis standard to decide the TILA TRID Timing Requirements issue before confirming the trigger facts" is wrong because escrow analysis is a separate requirement; the trigger for the Loan Estimate is the receipt of an application. "Rely on oral agreement when the rule requires documented compliance" is incorrect because the Loan Estimate must be provided in writing. Exam tip: The clock for the Loan Estimate starts when the application is received; the deadline is three business days later.
Why This Is the Correct Answer
The correct response is "Provide the Loan Estimate within three business days" because TRID Loan Estimate duties begin when the application trigger is met.
Why the Other Options Are Wrong
Option A: Use an internal exception instead of the required federal disclosure or timing rule.
Use an internal exception instead of the required federal disclosure or timing rule. is not correct because it does not apply the rule tested by this file scenario.
Option B: Use the escrow analysis standard to decide the TILA TRID Timing Requirements issue before confirming the trigger facts.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option D: Rely on oral agreement when the rule requires documented compliance.
Rely on oral agreement when the rule requires documented compliance. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
TRID Loan Estimate timing: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to TRID Loan Estimate timing; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More Federal Laws Questions
A mortgage file is paused during a lock-desk handoff because of FCRA Adverse Action Notices. Which answer should identify which rule controls the file?
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?
Before the team acts on a production meeting, the MLO must address FCRA Adverse Action Notice. 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 mortgage team asks a quality-control reviewer about TRID Loan Estimate timing during a record-retention audit. Which answer should guide the file?
A mortgage team asks a branch supervisor about TILA APR and finance-charge rules during a renewal checklist. Which answer should guide the file?
A mortgage file is paused during a risk-control review because of TILA QM DTI Calculation. Which answer should choose the most defensible file action?
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?
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
An MLO is reviewing procedures for a case where a borrower asks to cancel PMI at the scheduled 80 percent point. What is the proper handling?
Next Question
Before the team acts on a branch training session, a licensing coordinator must address Fair Housing Act. Which response is most defensible?