A borrower gives all six items on Friday and calls on the following Wednesday asking why she has had nothing in writing. The originator says the file is still being reviewed. What should the reviewer conclude?
Correct Answer
D) Provide the Loan Estimate within three business days
Why this is correct: The governing rule under TRID (the governing federal rule is that once a borrower provides the six pieces of information constituting an application (name, income, SSN, property address, estimated property value, and loan amount sought), the lender must provide a Loan Estimate within three business days of receiving that application. This timing is mandatory and is not contingent on other events. Why the other choices are wrong: "Collect only verbal consent and send the written notice after the rate is locked" is wrong because TRID requires a specific written disclosure (the Loan Estimate), not just verbal consent, and the timing is not linked to a rate lock. "Use an informal worksheet in place of the required written disclosure" is wrong because the Loan Estimate is a prescribed, formal disclosure; informal worksheets do not satisfy the legal requirement. "Wait to respond until the borrower submits every underwriting condition" is wrong because the disclosure clock starts upon receipt of the application information, not upon completion of underwriting. Exam tip: Remember the "three-business-day" clock starts the moment the application is received (the six pieces of information), not later.
Why This Is the Correct Answer
The correct response is "Provide the Loan Estimate within three business days". After the application trigger is met, timing is driven by receipt of the application, not by underwriting, rate lock, or fee collection.
Why the Other Options Are Wrong
Option A: Collect only verbal consent and send the written notice after the rate is locked.
This choice is a tempting shortcut, but it conflicts with borrower communication and early-disclosure timing because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Option B: Use an informal worksheet in place of the required written disclosure.
This choice is a tempting shortcut, but it conflicts with borrower communication and early-disclosure timing because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Option C: Wait to respond until the borrower submits every underwriting condition.
This choice is not the best answer because it applies the wrong file step for borrower communication and early-disclosure timing; the governing rule is tested by the correct option.
Memory Technique
For TRID timing, first ask whether the application trigger has occurred, then count business days.
Exam Tip
For borrower communication and early-disclosure timing questions, separate the required file step from plausible sales, timing, or documentation shortcuts.
Common Mistakes to Avoid
- -Students often confuse preapproval or underwriting milestones with the federal Loan Estimate trigger.
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