Before the team acts on a branch training session, an audit analyst must address TRID Loan Estimate. Which response is most defensible?
Correct Answer
B) Provide the revised Loan Estimate within three business days of lock
Why this is correct: Under TRID, a rate lock that changes the interest rate or points is a changed circumstance that typically requires a revised Loan Estimate. The original explanation correctly notes that rate locks can require revised Loan Estimates. The rule generally requires the revised disclosure to be provided within three business days after the rate is locked. Therefore, "Provide the revised Loan Estimate within three business days of lock" is the compliant action. Why the other choices are wrong: "Ignore the lock expiration because underwriting delay was internal" is wrong because the cause of a delay (internal or external) may affect fee responsibility, but it does not eliminate the need to address the expiration and provide required disclosures. "Charge a lock-extension fee without confirming who caused the delay and what was disclosed" is wrong because charging such a fee may not be permitted if the delay was caused by the lender, and proper disclosures for the fee are required. "Use the new market rate but keep the old lock documentation unchanged" is wrong because failing to update disclosures with the new locked rate would violate TRID's accuracy requirements. Exam tip: A rate lock that changes loan terms is a classic 'changed circumstance' triggering a revised Loan Estimate. Remember the three-business-day timing for providing it.
Why This Is the Correct Answer
The correct response is "Provide the revised Loan Estimate within three business days of lock" because Rate locks can require revised Loan Estimates and accurate interest-rate-dependent disclosures.
Why the Other Options Are Wrong
Option A: Ignore the lock expiration because underwriting delay was internal.
This choice is a tempting shortcut, but it conflicts with rate-lock documentation because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Option C: Charge a lock-extension fee without confirming who caused the delay and what was disclosed.
This choice is a tempting shortcut, but it conflicts with rate-lock documentation because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Option D: Use the new market rate but keep the old lock documentation unchanged.
This choice is not the best answer because it applies the wrong file step for rate-lock documentation; the governing rule is tested by the correct option.
Memory Technique
rate-lock agreements: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
For rate-lock documentation questions, separate the required file step from plausible sales, timing, or documentation shortcuts.
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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