In a file escalation meeting, a disclosure specialist sees facts tied to TILA Closing Disclosure. What should the file reflect?
Correct Answer
C) Use a corrected Closing Disclosure when terms change
Why this is correct: When disclosed loan terms change, the creditor must issue a corrected Closing Disclosure. Only an APR change beyond tolerance, a loan-product change, or addition of a prepayment penalty starts a new three-business-day waiting period before consummation. Why the other choices are wrong: A generic rule without analyzing the change is insufficient; waiting for a regulator and relying on oral agreement both ignore mandatory written-disclosure duties. Exam tip: Correct the Closing Disclosure, then ask whether one of the three restart triggers occurred.
Why This Is the Correct Answer
The correct response is "Use a corrected Closing Disclosure when terms change" because The Closing Disclosure must be received in time and corrected under Regulation Z rules.
Why the Other Options Are Wrong
Option A: Apply a generic timing rule without analyzing the Closing Disclosure change
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 D: 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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