Before the team acts on a supervisory file review, a licensing coordinator must address TRID Tolerance Rules. Which response is most defensible?
Correct Answer
D) Use a corrected Closing Disclosure when terms change
Why this is correct: Under TRID (Regulation Z), if a change in terms causes a tolerance violation (e.g., a change in a zero-tolerance charge), the lender must provide a corrected Closing Disclosure at least three business days before consummation. This is the prescribed, defensible method for ensuring the consumer receives accurate final disclosures and the proper waiting period. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because TRID's correction and waiting period rules are mandatory. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because corrections must be made proactively before closing. "Rely on oral agreement when the rule requires documented compliance" is wrong because all changes must be reflected on a written, corrected Closing Disclosure. Exam tip: TRID corrections aren't optional. A changed term often means a new 3-day waiting period starts with a corrected CD.
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: 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: 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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