In a document-cure review, a closing coordinator sees facts tied to TRID Advertising Requirements. What should the file reflect?
Correct Answer
A) Remove the misleading approval or savings claim
Why this is correct: TRID Advertising Requirements, under Regulation Z, prohibit misleading claims in mortgage advertising. If a "document-cure review" reveals facts tied to such a violation—like a misleading approval or savings claim—the file must reflect the corrective action taken. The governing concept is that misleading claims must be removed to comply with the law and prevent consumer deception. The correct action is to "Remove the misleading approval or savings claim." Why the other choices are wrong: "Continue the activity because the borrower appears willing to proceed" is wrong because borrower willingness does not excuse a regulatory violation. "Ignore the consumer-protection issue unless the borrower complains" is wrong because compliance is proactive, not reactive; waiting for a complaint violates the duty to correct known issues. "Apply the state renewal timing rule even though the file is testing TRID Advertising Requirements" is wrong because it misapplies an unrelated rule; the issue requires addressing the specific advertising violation, not a timing rule. Exam tip: In TRID advertising questions, remember that misleading claims must be corrected immediately, regardless of borrower consent or complaints.
Why This Is the Correct Answer
The correct response is "Remove the misleading approval or savings claim" because Mortgage advertising must avoid misleading claims and satisfy APR/trigger-term rules.
Why the Other Options Are Wrong
Option B: Continue the activity because the borrower appears willing to proceed.
Continue the activity because the borrower appears willing to proceed. is not correct because it does not apply the rule tested by this file scenario.
Option C: Ignore the consumer-protection issue unless the borrower complains.
Ignore the consumer-protection issue unless the borrower complains. is not correct because it does not apply the rule tested by this file scenario.
Option D: Apply the state renewal timing rule even though the file is testing TRID Advertising Requirements.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Memory Technique
mortgage advertising compliance: 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 mortgage advertising compliance; 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 Ethics & Fraud Questions
In a closing-readiness check, a disclosure specialist sees facts tied to Appraisal Fraud Detection. What should the file reflect?
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