A borrower compares the Closing Disclosure with the most recent Loan Estimate. Which items should receive particular attention?
Correct Answer
A) The final loan amount, rate, product, payments, closing costs, and cash to close
Why this is correct: The Closing Disclosure (CD) and Loan Estimate (LE) are the core integrated disclosures under TRID, designed to allow the borrower to compare key loan terms and costs. The borrower's final review should focus on the essential financial and contractual terms that define the transaction. As the original explanation states, this includes the final loan amount, interest rate, loan product (e.g., fixed vs. adjustable), projected payments, all closing costs, and the final cash required from the borrower to close. These are the items most critical for verifying the loan matches what was expected and for making an informed decision to proceed. Why the other choices are wrong: "Only the real estate agent's phone number" is wrong because contact information, while present on the CD, is not a core financial term requiring comparison. "Only the property's estimated future value" is wrong because the CD and LE do not contain a future value estimate; they focus on current transaction terms. "The MLO's examination score" is wrong because this personal licensure information is not part of the loan disclosure documents and is irrelevant to the transaction terms. Exam tip: Remember the "big six" for the CD-LE comparison: Loan Amount, Rate, Product, Payments, Closing Costs, and Cash to Close.
Why This Is the Correct Answer
Why this is correct: The Closing Disclosure (CD) and Loan Estimate (LE) are the core integrated disclosures under TRID, designed to allow the borrower to compare key loan terms and costs. The borrower's final review should focus on the essential financial and contractual terms that define the transaction. As the original explanation states, this includes the final loan amount, interest rate, loan product (e.g., fixed vs. adjustable), projected payments, all closing costs, and the final cash required from the borrower to close. These are the items most critical for verifying the loan matches what was expected and for making an informed decision to proceed. Why the other choices are wrong: "Only the real estate agent's phone number" is wrong because contact information, while present on the CD, is not a core financial term requiring comparison. "Only the property's estimated future value" is wrong because the CD and LE do not contain a future value estimate; they focus on current transaction terms. "The MLO's examination score" is wrong because this personal licensure information is not part of the loan disclosure documents and is irrelevant to the transaction terms. Exam tip: Remember the "big six" for the CD-LE comparison: Loan Amount, Rate, Product, Payments, Closing Costs, and Cash to Close.
More Mortgage Knowledge Questions
A self-employed borrower's eligible business income, after all required underwriting adjustments, is $72,000 for the first year and $84,000 for the second year. Using a simple 24-month average, what monthly income is used?
In a file escalation meeting, a processor sees facts tied to Discount Points Break Even Analysis. What should the file reflect?
During a mortgage operations checklist, a sponsorship reviewer identifies an issue involving points and fee calculations. Which response is most compliant?
A team member asks about DTI Calculation Guidelines in a consumer complaint triage while trying to explain the required action to the team. Which response should the file reviewer use?
A mortgage file is paused during a lock-desk handoff because of VA Loan Entitlement Calculation. Which answer should identify which rule controls the file?
A mortgage team asks a branch supervisor about DTI Calculation Rules during a company policy update. Which answer should guide the file?
A mortgage team asks a sponsorship reviewer about DTI Calculation Components during a file review. Which answer should guide the file?
Before the loan advances, a state compliance officer must resolve a LTV Ratio Calculation issue in a mortgage operations checklist. What should happen?
Before the loan advances, a branch supervisor must resolve a ARM features and caps issue in a ARM features and caps. What should happen?
In a closing-readiness check, a processor sees facts tied to LTV Calculation. What should the file reflect?
People Also Study
Federal Mortgage-Related Laws
24% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A borrower earns $7,500 gross per month. The proposed housing payment is $1,800 and other counted monthly debts total $600. What is the back-end DTI?
Next Question
During a training quiz scenario, the MLO encounters a QM Points and Fees Test issue. Which response should explain the required action to the team?