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.
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