A servicer wants to set a single internal standard for acknowledging written borrower requests, and asks what the outer limit is and which days are counted towards it.
Correct Answer
B) Acknowledge receipt within five business days
Why this is correct: Regulation X (12 CFR §1024.36(c)) requires a servicer to acknowledge receipt of a borrower's written information request sent to the designated address within five business days. This is a mandatory procedural step, independent of any regulator inquiry. Why the other choices are wrong: "Apply the rule only after a regulator asks specifically about RESPA reg x" is wrong because the duty is triggered by the borrower's request, not a regulator's inquiry. "Treat the rule as waived because all parties want the file to move faster" is wrong because regulatory duties cannot be waived by mutual convenience. "Assume another jurisdiction approval automatically cures this file" is wrong because federal RESPA requirements are not superseded by other approvals. Exam tip: For RESPA information requests, remember the "five-day acknowledgment" rule. The clock starts when the request is received at the designated address.
Why This Is the Correct Answer
The correct response is "Acknowledge receipt within five business days" because Lines 33-41; 12 CFR 1024.36(c).
Why the Other Options Are Wrong
Option A: Apply the rule only after a regulator asks specifically about RESPA reg x.
Apply the rule only after a regulator asks specifically about RESPA reg x. is not correct because it does not apply the rule tested by this file scenario.
Option C: Treat the rule as waived because all parties want the file to move faster.
Treat the rule as waived because all parties want the file to move faster. is not correct because it does not apply the rule tested by this file scenario.
Option D: Assume another jurisdiction approval automatically cures this file.
Assume another jurisdiction approval automatically cures this file. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
RESPA and Regulation X: 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 RESPA and Regulation X; 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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