A creditor receives all six TRID application elements on Monday and does not deny the application. By when must it generally deliver or mail the Loan Estimate?
Correct Answer
B) No later than three business days after receiving the application
Why this is correct: Under the TRID rule, a Loan Estimate must be delivered or placed in the mail no later than the third business day after the creditor receives the consumer's application. An application is triggered when the creditor receives six specific elements: name, income, Social Security number (to obtain a credit report), property address, estimated property value, and the loan amount sought. The clock starts when all six are received. Why the other choices are wrong: The choice "At consummation" is wrong because the Loan Estimate is an early disclosure required well before closing. The choice "Within 30 calendar days" is wrong; the rule is three business days, not 30 calendar days. The choice "Only after the appraisal is complete" is wrong because the creditor cannot wait for an appraisal or other documents to trigger the Loan Estimate obligation. Exam tip: The three-business-day deadline for the Loan Estimate is a hard rule. The six application elements are the trigger; receiving five does not start the clock.
Why This Is the Correct Answer
Why this is correct: Under the TRID rule, a Loan Estimate must be delivered or placed in the mail no later than the third business day after the creditor receives the consumer's application. An application is triggered when the creditor receives six specific elements: name, income, Social Security number (to obtain a credit report), property address, estimated property value, and the loan amount sought. The clock starts when all six are received. Why the other choices are wrong: The choice "At consummation" is wrong because the Loan Estimate is an early disclosure required well before closing. The choice "Within 30 calendar days" is wrong; the rule is three business days, not 30 calendar days. The choice "Only after the appraisal is complete" is wrong because the creditor cannot wait for an appraisal or other documents to trigger the Loan Estimate obligation. Exam tip: The three-business-day deadline for the Loan Estimate is a hard rule. The six application elements are the trigger; receiving five does not start the clock.
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