The loan team compares the file facts with TRID Loan Classifications during a licensing team review. Which conclusion is accurate?

Correct Answer

D) Check construction or permanent-phase treatment when applicable

TRID (TILA-RESPA Integrated Disclosure) rules require specific disclosures based on the loan's classification or transaction type. Different transactions have different risks, disclosure timing, and content requirements. Why this is correct: "Check construction or permanent-phase treatment when applicable" is correct because construction loans and construction-to-permanent loans have unique disclosure rules under TRID. For example, a construction-only loan may not require a Loan Estimate and Closing Disclosure in the same manner as a standard purchase loan. The file must reflect the correct treatment for the specific transaction type. Why the other choices are wrong: "Apply a different loan-program rule without checking the file facts" is wrong because TRID classifications depend on the actual transaction facts (e.g., is it a purchase, refinance, or construction loan?). "Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan" is wrong because borrower preference does not override the legal requirements for proper disclosure based on transaction type. "Apply the correct general concept to the wrong document-retention stage rather than the TRID Loan Classifications rule" is wrong because this action misapplies a concept. TRID classifications dictate initial disclosure requirements, not just document retention. Exam tip: For TRID, always identify the transaction type (purchase, refi, cash-out, construction) first, as this drives disclosure requirements.