A file contains an appraisal and, separately, an automated valuation model output and a desk review. The lender sends the borrower the appraisal only. What has been missed?
Correct Answer
C) Provide valuation copies promptly or three business days before closing
Why this is correct: Regulation B (ECOA) requires that for first-lien loans secured by a dwelling, the creditor must provide copies of all appraisals and written valuations to the applicant promptly upon completion, or at least three business days before closing, whichever is earlier. The correct answer directly follows this mandatory timing rule. Why the other choices are wrong: "Wait until after the staff training note to decide whether the disclosure, filing, or license issue matters" is wrong because the federal requirement is not optional and its timing is not dependent on internal training schedules. "Treat licensing and NMLS authority as satisfied by an oral manager approval" is wrong because this is a disclosure rule unrelated to MLO licensing; oral approval does not satisfy the requirement to deliver the document. "Treat prior mortgage experience as a substitute for the required compliance condition" is wrong because experience does not excuse following the specific regulatory procedure. Exam tip: For first-lien dwelling loans, provide the appraisal copy promptly or three business days before closing, whichever is earlier. This is a non-negotiable ECOA right.
Why This Is the Correct Answer
The correct response is "Provide valuation copies promptly or three business days before closing". Regulation B requires timely copies of appraisals and written valuations for covered first-lien dwelling applications.
Why the Other Options Are Wrong
Option A: Wait until after the staff training note to decide whether the disclosure, filing, or license issue matters.
Wait until after the staff training note to decide whether the disclosure, filing, or license issue matters. is not correct because it bypasses the rule supported by the explanation.
Option B: Treat licensing and NMLS authority as satisfied by an oral manager approval.
Treat licensing and NMLS authority as satisfied by an oral manager approval. is not correct because it bypasses the rule supported by the explanation.
Option D: Treat prior mortgage experience as a substitute for the required compliance condition.
Treat prior mortgage experience as a substitute for the required compliance condition. is not correct because it bypasses the rule supported by the explanation.
Memory Technique
Appraisal copy timing: promptly upon completion or three business days before closing.
Exam Tip
Appraisal copy timing: promptly upon completion or three business days before closing.
Common Mistakes to Avoid
- -The applicant request is not the trigger for the copy obligation in covered applications.
More Federal Laws Questions
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. 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 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?
A consumer complaint response raises a question about GLBA privacy requirements. Which action should the state compliance officer recommend?
Before the team acts on a branch training session, a policy analyst must address RESPA Servicing Transfer Notice. Which response is most defensible?
A training manager is resolving RESPA Referral Fees during an internal audit sample. Which action best fits the rule?
An operations lead is resolving ECOA Prohibited Discrimination Bases during a loan-team coaching session. Which action best fits the rule?
In a file escalation meeting, a disclosure specialist sees facts tied to TILA Closing Disclosure. What should the file reflect?
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
A lender mails the loan estimate on Monday 8 June rather than delivering it in person. Consummation is set for Friday 19 June. Without evidence of earlier delivery, on what date is the consumer presumed to have received the Loan Estimate?
Next Question
A mortgage team asks a licensing coordinator about TILA right of rescission during a disciplinary-risk review. Which answer should guide the file?