During a disclosure desk review, a risk reviewer encounters a TRID Application Requirements issue. Which response should decide how the file should be documented?
Correct Answer
D) Recognize when the TRID application trigger has occurred
Why this is correct: Under the TILA-RESPA Integrated Disclosure (TRID) rule, specific application information triggers the requirement to provide a Loan Estimate. The file must be documented to show recognition of this trigger, which typically occurs when the lender receives six key pieces of information: the borrower's name, income, Social Security number, property address, estimated value, and loan amount sought. Why the other choices are wrong: "Apply a different loan-program rule without checking the file facts" is wrong because TRID application triggers are fact-specific and must be verified. "Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan" is wrong because borrower preference does not override the factual triggers for disclosure timing. "Use the same treatment for all mortgage products without comparing program requirements" is wrong because TRID applies broadly, but the application trigger must still be identified for each file. Exam tip: Know the six pieces of information that trigger a TRID application; documenting this trigger is a core compliance step.
Why This Is the Correct Answer
The correct response is "Recognize when the TRID application trigger has occurred" because Loan application processing depends on required application data, documentation, and disclosure timing.
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 C: 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
loan-application timing and documentation: 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 loan-application timing and documentation; 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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