A prepayment penalty is added to a loan 48 hours before consummation. The closing is already booked and the movers are hired. What has to happen to the closing date?
Correct Answer
C) Delay consummation until the corrected disclosure timing is met
Why this is correct: TRID's core consummation timing rule is that the borrower must receive the Closing Disclosure at least three business days before closing. If a corrected CD is required, a new three-business-day waiting period is typically triggered. Therefore, the only compliant action is to "Delay consummation until the corrected disclosure timing is met." This ensures the mandatory waiting period is respected. Why the other choices are wrong: "Use an internal exception" is wrong because federal TRID timing rules are mandatory and cannot be waived by internal policy. "Apply the correct general concept to the wrong appraisal review stage" is wrong because appraisal review stages are unrelated to TRID Closing Disclosure timing; this action misapplies a concept. "Rely on oral agreement" is wrong because the timing rule is a strict, written regulatory requirement; an oral agreement cannot override it. Exam tip: When you see "TRID Closing Disclosure timing," the immediate action should be to check and, if necessary, delay closing to meet the required waiting period. Never proceed without confirming the timing is satisfied.
Why This Is the Correct Answer
The correct response is "Delay consummation until the corrected disclosure timing is met" 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: Apply the correct general concept to the wrong appraisal review stage rather than the TRID APR Tolerance rule.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
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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