A borrower asks the same question in a phone call on Tuesday and in a letter that arrives on Thursday. A representative treats the call as the start of the clock. Which one starts it, and what is owed?
Correct Answer
B) Acknowledge receipt within five business days
Why this is correct: Under Regulation X (RESPA), 12 CFR 1024.36(c), a servicer must acknowledge receipt of a borrower's written request for information (RFI) within five business days. This applies when the request is sent to the servicer's designated address and is a 'qualified written request' as defined. The acknowledgment is a mandatory procedural step. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because federal timing rules like the five-day acknowledgment are mandatory and cannot be overridden by internal policy. "Use the government-loan eligibility standard to decide the Regulation X request for information timing issue before confirming the trigger facts" is wrong because Regulation X's RFI rules are distinct from loan eligibility standards; the five-day clock starts upon receipt of a qualifying request. "Rely on oral agreement when the rule requires documented compliance" is wrong because Regulation X requires written acknowledgment; oral communication does not satisfy the rule. Exam tip: For Regulation X RFI questions, memorize the five-business-day acknowledgment deadline. It's a frequent exam point.
Why This Is the Correct Answer
The correct response is "Acknowledge receipt within five business days" because Lines 33-41; 12 CFR 1024.36(c).
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 C: Use the government-loan eligibility standard to decide the Regulation X request for information timing issue before confirming the trigger facts.
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
RESPA and Regulation X: 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 RESPA and Regulation X; 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
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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 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?
A consumer complaint response raises a question about GLBA privacy requirements. Which action should the state compliance officer recommend?
Before the team acts on a branch training session, a policy analyst must address RESPA Servicing Transfer Notice. Which response is most defensible?
A training manager is resolving RESPA Referral Fees during an internal audit sample. Which action best fits the rule?
An operations lead is resolving ECOA Prohibited Discrimination Bases during a loan-team coaching session. Which action best fits the rule?
In a file escalation meeting, a disclosure specialist sees facts tied to TILA Closing Disclosure. What should the file reflect?
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