A borrower opens the emailed Closing Disclosure on Wednesday for a Friday closing, having received the secure link on Monday. A reviewer asks whether the timing works.
Correct Answer
C) Ensure Closing Disclosure receipt three business days before consummation
Why this is correct: The TILA-RESPA Integrated Disclosure (TRID) rule, part of Regulation Z, mandates that the borrower must receive the Closing Disclosure no later than three business days before loan consummation (closing). This "three-day rule" is a fundamental timing requirement to give the borrower time to review the final terms. Ensuring receipt within this window is the compliant action. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is never permissible for federal timing mandates. "Wait until a regulator asks for the file before applying the federal requirement" is non-compliant, as the rule must be followed at closing. "Rely on oral agreement when the rule requires documented compliance" is wrong because TRID requires the borrower's actual receipt of the written Closing Disclosure. Exam tip: Memorize the TRID mantra: 'Closing Disclosure received three business days before consummation.'
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 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 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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