A training manager is resolving TILA TRID Loan Estimate during an internal audit sample. Which action best fits the rule?
Correct Answer
B) Use the application data to trigger required disclosures
Why this is correct: Under TILA-RESPA Integrated Disclosure (TRID) rules, a Loan Estimate must be provided within three business days after receipt of a completed application. The trigger is the application data, which includes six key pieces: name, income, Social Security number, property address, estimated value, and loan amount sought. Using this data to trigger disclosures ensures compliance with the timing requirement. Why the other choices are wrong: "Apply a different loan-program rule without checking the file facts" would bypass TRID's specific application-based trigger. "Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan" is irrelevant to the disclosure trigger; TRID applies regardless of borrower preference. "Use the construction draw standard to decide the TILA TRID Loan Estimate issue before confirming the trigger facts" incorrectly applies a construction-specific rule to a general disclosure timing question. Exam tip: For TRID, always tie the Loan Estimate timing to the completed application data—memorize the six items that define an application.
Why This Is the Correct Answer
The correct response is "Use the application data to trigger required disclosures" because Loan application processing depends on required application data, documentation, and disclosure timing.
Why the Other Options Are Wrong
Option A: Apply a different loan-program rule without checking the file facts.
Apply a different loan-program rule without checking the file facts. is not correct because it does not apply the rule tested by this file scenario.
Option C: Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan.
Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan. is not correct because it does not apply the rule tested by this file scenario.
Option D: Use the construction draw standard to decide the TILA TRID Loan Estimate 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.
Memory Technique
loan-application timing and documentation: 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 loan-application timing and documentation; 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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