Compliance & Regulatory Frameworks Flashcards

Under TRID, within how many business days after receiving a consumer's application must the creditor deliver or mail the Loan Estimate?

Answer: 3 business days

Regulation Z requires the Loan Estimate to be delivered or placed in the mail no later than the third business day after the creditor receives the application.

A borrower must receive the Closing Disclosure at least how long before consummation?

Answer: 3 business days

TRID requires the consumer to receive the Closing Disclosure no later than three business days before consummation.

After the Closing Disclosure is issued, which change requires a corrected CD and a new 3-business-day waiting period?

Answer: The addition of a prepayment penalty

Adding a prepayment penalty, changing the loan product, or an APR becoming inaccurate beyond tolerance triggers a new three-business-day waiting period.

Which fee disclosed on the Loan Estimate is subject to zero tolerance under TRID?

Answer: The creditor's origination charge

Fees paid to the creditor, mortgage broker, or their affiliates, plus transfer taxes, cannot increase at closing beyond what was disclosed.

Recording fees and third-party services selected from the creditor's written provider list fall into which TRID tolerance category?

Answer: 10% cumulative tolerance

These charges may increase but not by more than 10% in aggregate compared with the Loan Estimate amounts.

Which item is NOT one of the six pieces of information that constitute an application under TRID?

Answer: Copies of the borrower's bank statements

The six elements are name, income, SSN, property address, estimated property value, and loan amount sought; asset documentation is not required.

Which transaction gives the consumer a TILA right of rescission?

Answer: Cash-out refinance of a primary residence with a new lender

Rescission applies to non-purchase loans secured by the consumer's principal dwelling, such as a refinance with a new creditor.