A file shows the Closing Disclosure issued on the 10th and consummation on the 12th, with no weekend in between. What has gone wrong with the schedule?
Correct Answer
B) Ensure Closing Disclosure receipt three business days before consummation
Why this is correct: Under the TRID Rule (Regulation Z), the lender must ensure the borrower receives the Closing Disclosure no later than three business days before loan consummation (closing). This waiting period allows the borrower to review the final terms and costs. The correct answer, "Ensure Closing Disclosure receipt three business days before consummation," states the core timing and delivery requirement. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because internal policies cannot override the federal TRID timing mandate. "Resolve the TRID Closing Disclosure issue with the PMI cancellation exception that does not fit the facts" is wrong because applying an unrelated exception (like one for Private Mortgage Insurance) is a misapplication of the rule. "Rely on oral agreement when the rule requires documented compliance" is wrong because TRID requires actual receipt of the written disclosure; oral communication does not suffice. Exam tip: For TRID timing questions, remember the key phrase: "received three business days before consummation." Correct answers focus on ensuring this receipt; wrong answers offer shortcuts, misapplied exceptions, or non-documented methods.
Why This Is the Correct Answer
The correct response is "Ensure Closing Disclosure receipt three business days before consummation" 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 C: Resolve the TRID Closing Disclosure issue with the PMI cancellation exception that does not fit the facts.
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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