A mortgage file is paused during a risk-control review because of TILA Closing Disclosure Timing. Which answer should resolve the issue before the file moves forward?
Correct Answer
C) Confirm the required closing disclosure timing
Why this is correct: As the original explanation states, closing requires correct disclosures. A central TILA/TRID rule is specific timing for the Closing Disclosure. The compliant action to resolve a file paused for this issue is to confirm the required closing disclosure timing. Under TRID, the lender must provide the Closing Disclosure at least three business days before consummation, allowing the borrower to review final terms. Why the other choices are wrong: "Apply a different loan-program rule without checking the file facts" is wrong because it is an arbitrary and non-compliant practice that could worsen the timing error. "Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan" is wrong because disclosure timing is a strict legal deadline, not something that can be ignored based on preference. "Use the same treatment for all mortgage products without comparing program requirements" is wrong because while TRID timing generally applies, there can be exceptions or different rules for certain loan types (like reverse mortgages); a blanket approach is risky. Exam tip: The "three-day rule" for the Closing Disclosure is a hard deadline. If a file is paused, the first step is always to verify this timing was met.
Why This Is the Correct Answer
The correct response is "Confirm the required closing disclosure timing" because Closing requires correct disclosures, title documents, signatures, and settlement charges before consummation.
Why the Other Options Are Wrong
Option A: Apply a different loan-program rule without checking the file facts.
Apply a different loan-program rule without checking the file facts. is not correct because it does not apply the rule tested by this file scenario.
Option B: Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan.
Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan. is not correct because it does not apply the rule tested by this file scenario.
Option D: Use the same treatment for all mortgage products without comparing program requirements.
Use the same treatment for all mortgage products without comparing program requirements. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
TILA 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 TILA 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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