Before the team acts on a production meeting, the file reviewer must address TILA TRID Timing. Which response is most defensible?
Correct Answer
D) Delay consummation until the corrected disclosure timing is met
Why this is correct: Under TILA/TRID, the borrower must receive the Closing Disclosure no later than three business days before consummation (closing). If a corrected disclosure is required due to certain changes, the waiting period may restart. The correct answer, "Delay consummation until the corrected disclosure timing is met," is the only compliant action. It ensures the mandatory waiting period is honored, preventing a timing violation. Why the other choices are wrong: "Use the credit underwriting standard" is wrong because underwriting criteria are unrelated to the specific disclosure timing rules of TRID. "Wait until a regulator asks" is wrong because the lender must proactively comply with timing rules; waiting for a regulator is a compliance failure. "Rely on oral agreement" is wrong because TRID timing requirements are strict, written rules; oral agreements cannot override them. Exam tip: The core TRID timing rule is "3-7-3": Loan Estimate within 3 business days of application, waiting 7 business days after LE before closing, and Closing Disclosure at least 3 business days before closing.
Why This Is the Correct Answer
The correct response is "Delay consummation until the corrected disclosure timing is met" because The Closing Disclosure must be received in time and corrected under Regulation Z rules.
Why the Other Options Are Wrong
Option A: Use the credit underwriting standard to decide the TILA TRID Timing issue before confirming the trigger facts.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option B: Wait until a regulator asks for the file before applying the federal requirement.
Wait until a regulator asks for the file before applying the federal requirement. is not correct because it does not apply the rule tested by this file scenario.
Option C: 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
More Federal Laws Questions
A mortgage file is paused during a lock-desk handoff because of FCRA Adverse Action Notices. Which answer should identify which rule controls the file?
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?
Before the team acts on a production meeting, the MLO must address FCRA Adverse Action Notice. 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 mortgage team asks a quality-control reviewer about TRID Loan Estimate timing during a record-retention audit. Which answer should guide the file?
A mortgage team asks a branch supervisor about TILA APR and finance-charge rules during a renewal checklist. Which answer should guide the file?
A mortgage file is paused during a risk-control review because of TILA QM DTI Calculation. Which answer should choose the most defensible file action?
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?
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