An operations lead is resolving TRID Application Completeness during an internal audit sample. Which action best fits the rule?
Correct Answer
D) Use the application data to trigger required disclosures
Why this is correct: The correct action is to "Use the application data to trigger required disclosures." Under the TILA-RESPA Integrated Disclosure (TRID) rule, a loan application is complete when it contains six specific pieces of information: the borrower's name, income, Social Security number, property address, estimated property value, and loan amount sought. Once this data is received, it triggers the lender's obligation to provide the Loan Estimate within three business days. This factual trigger is the cornerstone of TRID timing. Why the other choices are wrong: The choice to "Apply a different loan-program rule without checking the file facts" is wrong because TRID application completeness is based on the presence of the six specific data points, not on unrelated program rules. The choice to "Treat the TRID Application Completeness review as complete because the file contains a related reverse-mortgage occupancy note" is wrong because a note about a different product (reverse mortgage) does not establish that the six required pieces of information for the subject application have been received. The choice to "Use the same treatment for all mortgage products without comparing program requirements" is wrong because while TRID applies broadly, some disclosure details (like those for reverse mortgages) can vary; however, the trigger for the initial disclosure is always the receipt of the six application items. Exam tip: Memorize the six pieces of information that make an application "complete" under TRID. This is the definitive trigger for issuing the Loan Estimate.
Why This Is the Correct Answer
The correct response is "Use the application data to trigger required disclosures" because Loan application processing depends on required application data, documentation, and disclosure timing.
Why the Other Options Are Wrong
Option A: Apply a different loan-program rule without checking the file facts.
Apply a different loan-program rule without checking the file facts. is not correct because it does not apply the rule tested by this file scenario.
Option B: Treat the TRID Application Completeness review as complete because the file contains a related reverse-mortgage occupancy note.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option C: Use the same treatment for all mortgage products without comparing program requirements.
Use the same treatment for all mortgage products without comparing program requirements. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
loan-application timing and documentation: 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 loan-application timing and documentation; 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 Mortgage Knowledge Questions
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What does an amortization schedule show for each scheduled payment?
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