A file is redisclosed for a loan amount that moved by $9,000, one day before consummation, and closes on schedule anyway. What does the review find?
Correct Answer
C) Delay consummation until the corrected disclosure timing is met
Why this is correct: TRID rules under Regulation Z establish mandatory waiting periods between providing the Closing Disclosure and consummation (loan closing). If a corrected Closing Disclosure is required due to certain changes, a new waiting period is triggered. The rule's purpose is to give the consumer time to review the final costs. Therefore, the accurate conclusion is to delay consummation until the corrected disclosure timing is met. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because the waiting periods are statutory and cannot be waived by internal policy. "Use prior flood insurance approval as a substitute for the current TILA TRID Waiting Period requirement" is wrong because flood insurance approval is a separate condition; it does not replace or satisfy the specific TRID timing rules. "Rely on oral agreement when the rule requires documented compliance" is wrong because the waiting period is based on the written disclosure's delivery; an oral agreement cannot alter this. Exam tip: TRID waiting periods are hard stops. If a new Closing Disclosure is needed, reset the clock—consummation cannot occur until the new waiting period has passed.
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 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 B: Use prior flood insurance approval as a substitute for the current TILA TRID Waiting Period requirement.
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
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
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