A quality-control reviewer flags a case because the borrower has provided enough information to trigger a TRID application. What correction is appropriate?
Correct Answer
B) Provide the Loan Estimate within three business days
Why this is correct: Under TRID (the governing federal rule, the corrective action for missing the initial disclosure is to provide the Loan Estimate. Since the application was triggered, the lender must comply with the three-business-day delivery rule, even if belatedly. Why the other choices are wrong: "Collect only verbal consent and send the written notice after the rate is locked" is wrong because verbal consent does not replace the written Loan Estimate, and timing is not tied to rate lock. "Use an informal worksheet in place of the required written disclosure" is wrong because informal documents do not satisfy the regulatory requirement for the standardized Loan Estimate form. "Use prior flood insurance approval as a substitute for the current Initial Loan Estimate timing requirement" is wrong because approvals for other requirements (like flood insurance) do not alter or fulfill the separate timing rule for the initial Loan Estimate. Exam tip: For compliance corrections, the fix is to provide the required disclosure (the Loan Estimate) as soon as possible, acknowledging the missed deadline.
Why This Is the Correct Answer
The correct response is "Provide the Loan Estimate within three business days". After the application trigger is met, timing is driven by receipt of the application, not by underwriting, rate lock, or fee collection.
Why the Other Options Are Wrong
Option A: 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 C: 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.
Option D: Use prior flood insurance approval as a substitute for the current Initial Loan Estimate timing requirement.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Memory Technique
For TRID timing, first ask whether the application trigger has occurred, then count business days.
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
- -Students often confuse preapproval or underwriting milestones with the federal Loan Estimate trigger.
More Origination Questions
In a training scenario, the consumer locks the interest rate after the initial disclosure package. What action best follows the rule?
A mortgage file is paused during a risk-control review because of AIR Appraiser Independence. Which answer should explain the required action to the team?
A team member asks about Good Faith Dealing in a compliance desk review while trying to avoid a shortcut that would misapply the rule. Which response should the supervisor use?
A disclosure specialist is resolving Income Calculation Methods during an internal audit sample. Which action best fits the rule?
In a closing-readiness check, a quality-control reviewer sees facts tied to Self Employed Income Calculation. What should the file reflect?
During a disclosure desk review, a policy analyst encounters an Income Calculation Self Employed issue. Which response should decide how the file should be documented?
During a training quiz scenario, the loan team encounters an Income Calculation issue. Which response should resolve the issue before the file moves forward?
Before the team acts on a servicing handoff check, a closing coordinator must address Asset Verification and Reserves. Which response is most defensible?
An MLO is reviewing procedures for a case where a cost changes after the Closing Disclosure has already been provided. What is the proper handling?
During a post-application update, a quality-control reviewer encounters a Credit Analysis and Evaluation issue. Which response should avoid a shortcut that would misapply the rule?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A team member asks about Homeowners Protection Act in a compliance desk review while trying to apply the requirement without relying on borrower preference. Which response should a licensing coordinator use?
Next Question
An operations lead compares the file facts with Credit Analysis and Documentation during a borrower follow-up call. Which conclusion is accurate?