A mortgage team asks a state compliance officer about TRID Loan Estimate Timing during a consumer complaint response. Which answer should guide the file?
Correct Answer
D) Compare charges between the Loan Estimate and Closing Disclosure
Why this is correct: "Compare charges between the Loan Estimate and Closing Disclosure" should guide the file because TRID rules mandate a comparison to ensure that estimated closing costs fall within specified tolerance limits (0%, 10%, or unlimited). This comparison is central to resolving consumer complaints about cost increases and is required for the Closing Disclosure itself. Why the other choices are wrong: To "Use the lowest advertised provider quote after a different provider has been selected" is wrong because the creditor must use the quote from the provider actually selected by the borrower for the disclosure. To "Treat a changed provider fee as unlimited solely because it is paid to a third party" is wrong; whether a fee is subject to tolerance limits depends on its category, not merely that it's paid to a third party. To "Leave the Loan Estimate unchanged after the creditor learns the disclosed charge is inaccurate" is wrong because a valid changed circumstance may require a revised estimate. Exam tip: When comparing fees, remember the three tolerance buckets: 0% (cannot increase), 10% (can increase up to 10% in aggregate), and unlimited.
Why This Is the Correct Answer
The correct response is "Compare charges between the Loan Estimate and Closing Disclosure" because TRID fee disclosures and tolerance categories govern estimates, revisions, and closing-cost comparison.
Why the Other Options Are Wrong
Option A: Use the lowest advertised provider quote after a different provider has been selected.
This choice is not the best answer because it applies the wrong file step for fee disclosure and tolerance treatment; the governing rule is tested by the correct option.
Option B: Treat a changed provider fee as unlimited solely because it is paid to a third party.
This choice is a tempting shortcut, but it conflicts with fee disclosure and tolerance treatment because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Option C: Leave the Loan Estimate unchanged after the creditor learns the disclosed charge is inaccurate.
This choice is not the best answer because it applies the wrong file step for fee disclosure and tolerance treatment; the governing rule is tested by the correct option.
Memory Technique
TRID Loan Estimate Timing: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
For fee disclosure and tolerance treatment questions, separate the required file step from plausible sales, timing, or documentation shortcuts.
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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