10 questions, graded as you go, with the reason for every answer. No sign-up.
What this covers
TILA basics
RESPA Section 8
RESPA Section 9
TRID application
Loan Estimate timing
Closing Disclosure timing
Business day definitions
Closing Disclosure changes
Tolerances
Fees before intent to proceed
Loan Estimate expiration
Tolerance cures
Sample questions
Under the TRID rule, a creditor has received an "application" once it has six pieces of information. Which item is NOT one of the six?
The consumer's employment history
The address of the property
The loan amount being sought
An estimate of the property's value
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A. The consumer's employment history
The six items are the consumer's name, income, Social Security number, the property address, an estimate of the property value and the loan amount sought. Employment history is collected on the full loan application but is not needed to trigger the Loan Estimate.
Reference: Regulation Z (12 CFR Part 1026), 1026.2(a)(3)(ii)
What is the minimum waiting period between the creditor delivering or mailing the Loan Estimate and consummation of the loan?
3 business days
5 business days
7 business days
10 business days
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C. 7 business days
The Loan Estimate must be delivered or mailed at least seven business days before consummation. Three business days is the separate waiting period that applies to the Closing Disclosure.
Reference: Regulation Z (12 CFR Part 1026), 1026.19(e)(1)(iii)(B)
After the Closing Disclosure has been provided, which change requires a corrected disclosure and a new three-business-day waiting period?
A prepayment penalty is added to the loan
The recording fee rises by $40
The seller credit is reduced by $500
The closing is moved back by two days
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A. A prepayment penalty is added to the loan
Only three changes restart the waiting period: the APR becomes inaccurate, the loan product changes, or a prepayment penalty is added. Other changes, such as fee or credit amounts, need a corrected Closing Disclosure at or before consummation but no new waiting period.
Reference: Regulation Z (12 CFR Part 1026), 1026.19(f)(2)(ii)
