A servicer’s policy is to acknowledge information requests only once the underlying answer has been researched, which usually takes two to three weeks. What does Regulation X require in the meantime?
Correct Answer
D) Acknowledge receipt within five business days
Why this is correct: Regulation X (implementing RESPA) at 12 CFR § 1024.36(c) explicitly requires servicers to acknowledge receipt of a qualified written request for information within five business days. This is the mandatory next step. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because federal rules preempt internal exceptions. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because the duty to acknowledge is immediate, not contingent on regulatory scrutiny. "Assume the Regulation X request for information timing condition is met because the borrower satisfied the separate anti-steering requirement" is wrong because anti-steering rules (under TILA) are distinct; satisfying one does not fulfill the separate RESPA acknowledgment obligation. Exam tip: Keep RESPA's request acknowledgment (5 business days) separate from other timing rules like anti-steering disclosures.
Why This Is the Correct Answer
The correct response is "Acknowledge receipt within five business days" because Lines 33-41; 12 CFR 1024.36(c).
Why the Other Options Are Wrong
Option A: Use an internal exception instead of the required federal disclosure or timing rule.
Use an internal exception instead of the required federal disclosure or timing rule. is not correct because it does not apply the rule tested by this file scenario.
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: Assume the Regulation X request for information timing condition is met because the borrower satisfied the separate anti-steering 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
RESPA and Regulation X: 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 RESPA and Regulation X; 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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