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A quality-control reviewer flags a case because a closing is approaching and the borrower has not yet received the Closing Disclosure. What correction is appropriate?

Correct Answer

B) Ensure receipt three business days before consummation

Lines 205-206; 12 CFR 1026.19(f)(1)(ii). The Closing Disclosure is a pre-consummation disclosure, so receipt must occur at least three business days before consummation. Therefore, the correct response is "Ensure receipt three business days before consummation".

Answer Options
A
Increase a zero-tolerance charge because the borrower accepted the cost verbally.
B
Ensure receipt three business days before consummation
C
Wait until closing to disclose a known lender-required fee.
D
Use the lowest advertised provider quote after a different provider has been selected.

Why This Is the Correct Answer

Lines 205-206; 12 CFR 1026.19(f)(1)(ii). The Closing Disclosure is a pre-consummation disclosure, so receipt must occur at least three business days before consummation. Therefore, the correct response is "Ensure receipt three business days before consummation".

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