Before closing, the team discovers that a borrower sends a written request for information to the servicer-designated address. What is the safest compliant answer?

Correct Answer

D) Acknowledge receipt within five business days

This question tests the specific duty under Regulation X (RESPA) when a borrower sends a written request for information to the servicer's designated address. The governing rule is found in 12 CFR § 1024.36(c), which mandates that a servicer must acknowledge receipt of a borrower's "qualified written request" within five business days. Why this is correct: The correct action is to "Acknowledge receipt within five business days." This is a strict, non-discretionary requirement under Regulation X. The servicer must send this acknowledgment to the borrower, regardless of the content or complexity of the request, as long as it meets the criteria for a qualified written request sent to the designated address. Why the other choices are wrong: "Use a generic national checklist instead of the requirement in this risk-control meeting" is wrong because Regulation X imposes a specific, mandatory procedure that cannot be overridden by a generic checklist or internal meeting notes. "Document that RESPA reg x was reviewed, but take no required corrective action" is wrong because merely reviewing the regulation does not fulfill the affirmative duty to act; the servicer must perform the required action of sending the acknowledgment. "Use an informal exception and leave the required record unchanged" is wrong because Regulation X does not provide for informal exceptions to this core procedural requirement; the servicer must comply. Exam tip: For borrower information requests, remember the "5-day acknowledgment" rule under RESPA Regulation X. It's a fixed deadline that triggers automatically upon receipt of a qualified written request.