A closing coordinator is resolving TILA TRID Timing Requirements during a loan-team coaching session. Which action best fits the rule?
Correct Answer
B) Use a corrected Closing Disclosure when terms change
Why this is correct: Under TRID rules, if there is a change in loan terms that occurs after the Closing Disclosure is provided but before consummation, a corrected Closing Disclosure must be provided to the consumer. The consumer must receive the corrected disclosure at least three business days before closing if the change falls into certain categories (e.g., APR increases beyond tolerance). The correct action, "Use a corrected Closing Disclosure when terms change," is a fundamental TRID requirement, as indicated in the original explanation. Why the other choices are wrong: "Treat the TILA TRID Timing Requirements review as complete because the file contains a related anti-steering note" is wrong because an anti-steering note relates to a different rule (loan originator compensation) and does not satisfy the specific timing and correction requirements for the Closing Disclosure. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because TRID timing rules require proactive compliance; waiting is not permissible. "Rely on oral agreement when the rule requires documented compliance" is wrong because TRID mandates written disclosures; oral agreements do not fulfill the legal requirement to provide a corrected Closing Disclosure. Exam tip: For TRID timing, remember that a change in terms often necessitates a corrected Closing Disclosure and may restart a 3-business-day waiting period.
Why This Is the Correct Answer
The correct response is "Use a corrected Closing Disclosure when terms change" because The Closing Disclosure must be received in time and corrected under Regulation Z rules.
Why the Other Options Are Wrong
Option A: Treat the TILA TRID Timing Requirements review as complete because the file contains a related anti-steering 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: 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 Closing Disclosure 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 Closing Disclosure 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
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