A servicer receives a written information request and answers it in full on the second business day, without sending a separate acknowledgment first. A reviewer asks whether the acknowledgment was still required.
Correct Answer
A) Acknowledge receipt within five business days
Why this is correct: Under Regulation X (12 CFR § 1024.36(c)), servicers must acknowledge receipt of a borrower's written request for information sent to the designated address within five business days. This is a clear compliance requirement. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because internal procedures cannot waive federal Regulation X duties. "Treat the Regulation X request for information timing review as complete because the file contains a related anti-steering note" is wrong because anti-steering compliance (under TILA) is unrelated to RESPA's information request acknowledgment rules. "Rely on oral agreement when the rule requires documented compliance" is wrong because Regulation X mandates a written acknowledgment; oral communication does not fulfill this. Exam tip: The five-day acknowledgment rule applies specifically to written requests for information under Regulation X, regardless of other file notes.
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 B: 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 Regulation X request for information timing review as complete because the file contains a related anti-steering 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
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
More Federal Laws Questions
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?
A team member asks about RESPA Kickbacks and Referrals in an investor-delivery review while trying to confirm the rule-based response. Which response should the loan team use?
During a disclosure desk review, the loan team encounters an RESPA Servicing Transfer issue. Which response should avoid a shortcut that would misapply the rule?
A disciplinary-risk review raises a question about TILA APR and finance-charge rules. Which action should the renewal specialist recommend?
An MLO is reviewing procedures for a case where a compliance analyst asks why covered mortgage application data is collected. What is the proper handling?
A consumer complaint response raises a question about GLBA privacy requirements. Which action should the state compliance officer recommend?
Before the team acts on a branch training session, a policy analyst must address RESPA Servicing Transfer Notice. Which response is most defensible?
A training manager is resolving RESPA Referral Fees during an internal audit sample. Which action best fits the rule?
An operations lead is resolving ECOA Prohibited Discrimination Bases during a loan-team coaching session. Which action best fits the rule?
In a file escalation meeting, a disclosure specialist sees facts tied to TILA Closing Disclosure. What should the file reflect?
People Also Study
General Mortgage Knowledge
20% 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 nonbank residential mortgage lender subject to 31 CFR 1029.210 has written AML policies, a designated compliance officer and annual training. Its annual program testing is performed solely by that designated compliance officer. Which required element is not satisfied by this testing arrangement?
Next Question
An applicant declines to state ethnicity, race and sex on a $185,000 application taken entirely by telephone on 12 August. For this HMDA-covered application, how should the lender record the declined demographic information?