A mortgage file is paused during a secondary-market screen because of TRID Loan Estimate Revisions. Which answer should confirm the rule-based response?
Correct Answer
B) Compare charges between the Loan Estimate and Closing Disclosure
Why this is correct: Under the TRID Rule (TILA-RESPA Integrated Disclosure), a key compliance step is to compare the charges on the final Closing Disclosure (CD) with those on the most recent Loan Estimate (LE). This comparison ensures that fees fall within allowed tolerances and that any valid revisions were properly made. This is the rule-based response to confirm accuracy before proceeding. Why the other choices are wrong: Treating a changed provider fee as unlimited solely because it is paid to a third party is wrong; while some third-party fees can change without tolerance limits, they must still be disclosed and cannot be treated as "unlimited" without applying the correct TRID category rules. Leaving the Loan Estimate unchanged after the creditor learns the disclosed charge is inaccurate is wrong because TRID requires issuing a revised Loan Estimate if a valid change event occurs before closing. Curing a tolerance problem by renaming the fee instead of documenting or refunding the variance is wrong; renaming a fee to avoid a tolerance violation is deceptive and does not cure the error, which requires a refund to the borrower. Exam tip: For TRID questions, the correct answer often involves comparing the LE and CD, issuing revisions when required, and providing refunds for tolerance violations.
Why This Is the Correct Answer
The correct response is "Compare charges between the Loan Estimate and Closing Disclosure" because TRID fee disclosures and tolerance categories govern estimates, revisions, and closing-cost comparison.
Why the Other Options Are Wrong
Option A: Treat a changed provider fee as unlimited solely because it is paid to a third party.
This choice is a tempting shortcut, but it conflicts with fee disclosure and tolerance treatment because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Option C: Leave the Loan Estimate unchanged after the creditor learns the disclosed charge is inaccurate.
This choice is not the best answer because it applies the wrong file step for fee disclosure and tolerance treatment; the governing rule is tested by the correct option.
Option D: Cure a tolerance problem by renaming the fee instead of documenting or refunding the variance.
This choice is a tempting shortcut, but it conflicts with fee disclosure and tolerance treatment because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Memory Technique
TRID Loan Estimate Revisions: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
For fee disclosure and tolerance treatment 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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