During a post-application update, a processor encounters a TRID Changed Circumstances issue. Which response should apply the requirement without relying on borrower preference?
Correct Answer
A) Compare charges between the Loan Estimate and Closing Disclosure
Why this is correct: Under TRID, a key step in addressing a changed circumstance is to compare the charges on the most recent Loan Estimate with those on the Closing Disclosure. This comparison determines if fees have changed beyond permitted tolerances, which is central to applying the rule correctly. Why the other choices are wrong: "Use the lowest advertised provider quote after a different provider has been selected" is wrong because TRID rules for changed circumstances are based on actual estimates and selections, not hypothetical lowest quotes. "Treat a changed provider fee as unlimited solely because it is paid to a third party" is wrong because third-party fees are subject to the 10% tolerance category, not unlimited. "Apply the correct general concept to the wrong changed-circumstance stage rather than the TRID Changed Circumstances rule" is wrong because it misapplies the specific TRID framework. Exam tip: For TRID changed circumstances, always think: Compare the last Loan Estimate to the Closing Disclosure to check fee tolerances.
Why This Is the Correct Answer
The correct response is "Compare charges between the Loan Estimate and Closing Disclosure" because TRID fee disclosures and tolerance categories govern estimates, revisions, and closing-cost comparison.
Why the Other Options Are Wrong
Option B: Use the lowest advertised provider quote after a different provider has been selected.
This choice is not the best answer because it applies the wrong file step for fee disclosure and tolerance treatment; the governing rule is tested by the correct option.
Option C: Treat a changed provider fee as unlimited solely because it is paid to a third party.
This choice is a tempting shortcut, but it conflicts with fee disclosure and tolerance treatment because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Option D: Apply the correct general concept to the wrong changed-circumstance stage rather than the TRID Changed Circumstances rule.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Memory Technique
TRID Changed Circumstances: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
For fee disclosure and tolerance treatment 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
More Origination Questions
Before the team acts on a servicing handoff check, a closing coordinator must address Asset Verification and Reserves. Which response is most defensible?
An MLO is reviewing procedures for a case where a cost changes after the Closing Disclosure has already been provided. What is the proper handling?
During a post-application update, a quality-control reviewer encounters a Credit Analysis and Evaluation issue. Which response should avoid a shortcut that would misapply the rule?
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