A creditor receives five of the six TRID application elements but does not yet have the property address. Has the Loan Estimate three-business-day period begun?
Correct Answer
D) No; the TRID application trigger generally occurs when all six elements are received
Why this is correct: For TRID purposes, an application is defined by the receipt of six specific elements from the consumer. These are: the consumer's name, income, Social Security number (to obtain a credit report), the property address, an estimate of the property's value, and the mortgage loan amount sought. If any one of these six elements is missing—such as the property address—the application is not considered "received," and the three-business-day clock for delivering the Loan Estimate has not started. Why the other choices are wrong: The choice "Yes, any inquiry is a complete application" is wrong because TRID uses this specific six-element definition, not a general inquiry. The choice "Yes, if the consumer has income" is wrong because having income alone does not satisfy the requirement to have all six elements. The choice "Yes, but only for a refinance" is wrong; the six-element rule applies to both purchase and refinance loans under TRID. Exam tip: Know the six TRID application elements cold. The trigger for the Loan Estimate deadline is all six, not five.
Why This Is the Correct Answer
Why this is correct: For TRID purposes, an application is defined by the receipt of six specific elements from the consumer. These are: the consumer's name, income, Social Security number (to obtain a credit report), the property address, an estimate of the property's value, and the mortgage loan amount sought. If any one of these six elements is missing—such as the property address—the application is not considered "received," and the three-business-day clock for delivering the Loan Estimate has not started. Why the other choices are wrong: The choice "Yes, any inquiry is a complete application" is wrong because TRID uses this specific six-element definition, not a general inquiry. The choice "Yes, if the consumer has income" is wrong because having income alone does not satisfy the requirement to have all six elements. The choice "Yes, but only for a refinance" is wrong; the six-element rule applies to both purchase and refinance loans under TRID. Exam tip: Know the six TRID application elements cold. The trigger for the Loan Estimate deadline is all six, not five.
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