Which of the following changes would require a new 3-business day waiting period under TRID?
Correct Answer
B) An increase in the APR by 0.125% for a fixed-rate loan
Under TRID (12 CFR 1026.19(f)(2)(ii)), an increase in the APR by more than 1/8 of one percent (0.125%) for a fixed-rate loan requires a new 3-business day waiting period. The other changes do not trigger the waiting period reset.
Why This Is the Correct Answer
Under TRID (12 CFR 1026.19(f)(2)(ii)), an increase in the APR by more than 1/8 of one percent (0.125%) for a fixed-rate loan requires a new 3-business day waiting period. The other changes do not trigger the waiting period reset.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A mortgage advertisement states 'Get a 30-year fixed rate mortgage for just $1,850 per month, APR 4.25%.' What additional disclosure is still required under TILA?
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