An audit analyst compares the file facts with TILA TRID Disclosures during a new-hire scenario. Which conclusion is accurate?
Correct Answer
A) Count timing from the application trigger
Why this is correct: Under TILA TRID, the requirement to provide a Loan Estimate begins when the lender receives an "application," which is defined as the submission of six specific pieces of information: name, income, SSN, property address, property value, and loan amount. The correct answer, "Count timing from the application trigger," accurately identifies that the disclosure clock starts upon receipt of a complete application, not at some later point. Why the other choices are wrong: "Resolve the TILA TRID Disclosures issue with the high-cost loan exception that does not fit the facts" is wrong because high-cost loan (HOEPA) rules involve different, stricter disclosures; applying them to a standard TRID scenario is incorrect. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because TRID deadlines are mandatory and proactive. "Rely on oral agreement when the rule requires documented compliance" is wrong because TRID requires specific written disclosures (Loan Estimate) within three business days of application. Exam tip: The TRID timeline is anchored to the moment the six application pieces are received. Memorize those six items to identify when the clock starts.
Why This Is the Correct Answer
The correct response is "Count timing from the application trigger" because TRID Loan Estimate duties begin when the application trigger is met.
Why the Other Options Are Wrong
Option B: Resolve the TILA TRID Disclosures issue with the high-cost loan exception that does not fit the facts.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option C: Wait until a regulator asks for the file before applying the federal requirement.
Wait until a regulator asks for the file before applying the federal requirement. is not correct because it does not apply the rule tested by this file scenario.
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
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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?
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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?
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