A closing is set for Wednesday 14 June and the Closing Disclosure reaches the borrower on the Monday afternoon, 2 days earlier. What is the position?
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
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