Before the team acts on a servicing handoff check, a disclosure specialist must address TILA TRID Tolerances. Which response is most defensible?
Correct Answer
D) Ensure Closing Disclosure receipt three business days before consummation
Why this is correct: Under TILA-RESPA Integrated Disclosure (TRID) rules, the lender must ensure the borrower receives the Closing Disclosure at least three business days before consummation (loan closing). This waiting period allows the borrower to review final terms. The correct choice cites this mandatory timing rule. Why the other choices are wrong: Using an internal exception is never allowed to override federal disclosure timing. Waiting for a regulator to ask is a violation, as the duty is proactive. Treating a review as complete because a file contains a related note is insufficient; TRID requires the actual receipt of the Closing Disclosure by the borrower. Exam tip: For TRID timing, memorize: Loan Estimate within 3 business days of application, Closing Disclosure at least 3 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 C: Treat the TILA TRID Tolerances review as complete because the file contains a related loan estimate note.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
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
More Federal Laws Questions
A mortgage file is paused during a lock-desk handoff because of FCRA Adverse Action Notices. Which answer should identify which rule controls the file?
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?
Before the team acts on a production meeting, the MLO must address FCRA Adverse Action Notice. Which response is most defensible?
A team member asks about RESPA Kickbacks and Referrals in an investor-delivery review while trying to confirm the rule-based response. Which response should the loan team use?
During a disclosure desk review, the loan team encounters an RESPA Servicing Transfer issue. Which response should avoid a shortcut that would misapply the rule?
A mortgage team asks a quality-control reviewer about TRID Loan Estimate timing during a record-retention audit. Which answer should guide the file?
A mortgage team asks a branch supervisor about TILA APR and finance-charge rules during a renewal checklist. Which answer should guide the file?
A mortgage file is paused during a risk-control review because of TILA QM DTI Calculation. Which answer should choose the most defensible file action?
A disciplinary-risk review raises a question about TILA APR and finance-charge rules. Which action should the renewal specialist recommend?
An MLO is reviewing procedures for a case where a compliance analyst asks why covered mortgage application data is collected. What is the proper handling?
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