A borrower supplies everything except the property address, because he is still choosing between two houses. Nine days later he emails the address of the one he has gone with. When does the Loan Estimate become due?
Correct Answer
B) Provide the Loan Estimate within three business days
Why this is correct: The core TRID requirement (the governing federal rule is that the Loan Estimate must be delivered within three business days after the lender receives the six pieces of information that constitute an application. This deadline is fixed and is not delayed by other processes. Why the other choices are wrong: "Delay the early disclosure until underwriting has confirmed the borrower income" is wrong because underwriting verification occurs after the application is received; the Loan Estimate timing is not dependent on underwriting completion. "Collect only verbal consent and send the written notice after the rate is locked" is wrong because TRID mandates a specific written disclosure (the Loan Estimate) and its timing is not tied to rate lock. "Use an informal worksheet in place of the required written disclosure" is wrong because worksheets are not the legally prescribed Loan Estimate form. Exam tip: The three-day rule is triggered by application receipt, a point in time. Do not confuse it with later steps like underwriting or rate lock.
Why This Is the Correct Answer
The correct response is "Provide the Loan Estimate within three business days" because Lines 191-203; 12 CFR 1026.19(e)(1)(iii).
Why the Other Options Are Wrong
Option A: Delay the early disclosure until underwriting has confirmed the borrower income.
This choice is not the best answer because it applies the wrong file step for borrower communication and early-disclosure timing; the governing rule is tested by the correct option.
Option C: Collect only verbal consent and send the written notice after the rate is locked.
This choice is a tempting shortcut, but it conflicts with borrower communication and early-disclosure timing because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Option D: Use an informal worksheet in place of the required written disclosure.
This choice is a tempting shortcut, but it conflicts with borrower communication and early-disclosure timing because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Memory Technique
Initial 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
For borrower communication and early-disclosure timing questions, separate the required file step from plausible sales, timing, or documentation shortcuts.
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
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