A team asks whether the three-day requirement is satisfied by sending the Closing Disclosure three days before consummation or by the borrower having it three days before.
Correct Answer
B) Ensure Closing Disclosure receipt three business days before consummation
Why this is correct: Under TRID (Regulation Z), a creditor must ensure the consumer receives the Closing Disclosure no later than three business days before consummation (closing). This is a strict timing requirement that must be met for all covered transactions. The correct answer, "Ensure Closing Disclosure receipt three business days before consummation," directly states this mandatory step. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because the three-day rule is a federal requirement; internal policies cannot override it. "Treat the TILA Tolerance Violations review as complete because the file contains a related quality-control note" is wrong because a note does not confirm procedural compliance; the timing rule must be factually met. "Rely on oral agreement when the rule requires documented compliance" is wrong because receipt of the written disclosure is required; oral confirmation is insufficient. Exam tip: The 3-business-day receipt rule for the Closing Disclosure is a critical timing step that must be verified independently of any cost tolerance issues.
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 C: Treat the TILA Tolerance Violations review as complete because the file contains a related quality-control note.
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
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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