A written request arrives on 28 April and the servicer sends a substantive answer on 12 May with nothing in between. The answer is complete and correct. Has the servicer met its obligations?
Correct Answer
C) Acknowledge receipt within five business days
Why this is correct: Regulation X (RESPA) requires servicers to acknowledge receipt of a borrower's written request for information within five business days. This is a specific timing rule under 12 CFR § 1024.36(c). Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because internal policies cannot override Regulation X's mandatory acknowledgment deadline. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because compliance must be proactive, not delayed until regulatory inquiry. "Rely on oral agreement when the rule requires documented compliance" is wrong because Regulation X requires a written acknowledgment; oral confirmation does not suffice. Exam tip: For borrower information requests under Regulation X, remember the "five-business-day" acknowledgment clock starts upon receipt.
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 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 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
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