A Closing Disclosure is placed in the mail on Monday for a Thursday consummation. A processor treats the mailing date as the date of receipt. What does the rule require?
Correct Answer
D) Ensure Closing Disclosure receipt three business days before consummation
Why this is correct: Under TRID (Regulation Z), the creditor must ensure the borrower receives the Closing Disclosure at least three business days before consummation (closing). This waiting period allows the borrower to review the final terms. Why the other choices are wrong: "Use the advertising disclosure standard to decide the TRID Tolerance Rules issue before confirming the trigger facts" is wrong because advertising rules (TILA) are separate from TRID's closing timing rules. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because the three-day rule is mandatory before closing. "Rely on oral agreement when the rule requires documented compliance" is wrong because the receipt must be documented (e.g., proof of delivery). Exam tip: The three-business-day rule for the Closing Disclosure is a strict TRID timing requirement; 'business days' exclude Sundays and federal holidays.
Why This Is the Correct Answer
The correct response is "Ensure Closing Disclosure receipt three business days before consummation" because The Closing Disclosure must be received in time and corrected under Regulation Z rules.
Why the Other Options Are Wrong
Option A: Use the advertising disclosure standard to decide the TRID Tolerance Rules issue before confirming the trigger facts.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option B: 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 C: 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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