Which scenario would NOT require a new 3-business day waiting period after providing a corrected Closing Disclosure?
Correct Answer
C) Title insurance premium increases by $75 due to property value adjustment
A $75 increase in title insurance is likely within tolerance limits and would not trigger a new waiting period. The other options involve APR changes above 0.125%, product changes, or addition of prepayment penalties, all requiring new 3-day periods.
Why This Is the Correct Answer
A $75 increase in title insurance is likely within tolerance limits and would not trigger a new waiting period. The other options involve APR changes above 0.125%, product changes, or addition of prepayment penalties, all requiring new 3-day periods.
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?
People Also Study
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
A mortgage broker's radio ad states 'Get approved today! Finance charges starting at just $45,000 over the life of your loan.' What TILA disclosure is triggered by this statement?
Next Question
A borrower receives a Loan Estimate for a fixed-rate mortgage with a loan amount of $300,000, an interest rate of 4.5%, and total loan costs of $6,000. What must be included in the finance charge calculation under TILA?