Mortgage Lending & Loan Origination Flashcards
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Read the first 7 Mortgage Lending & Loan Origination flashcards as text
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 receiving the application.
Which item is NOT one of the six pieces of information that make up an 'application' under TRID?
Answer: Verified two-year employment history
The six TRID items are name, income, SSN, property address, estimated property value, and loan amount sought; verified employment history is not one of them.
How many business days before consummation must the consumer receive the Closing Disclosure?
Answer: At least 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 three-business-day waiting period?
Answer: The APR becomes inaccurate by more than 1/8 of 1% on a regular transaction
A new waiting period is triggered only by an APR that becomes inaccurate, a change in loan product, or the addition of a prepayment penalty.
Which charge falls in the zero-tolerance category under TRID?
Answer: Origination charges paid to the creditor
Fees paid to the creditor, mortgage broker, or their affiliates cannot increase at all from the Loan Estimate absent a valid changed circumstance.
Which fees are subject to the 10% cumulative tolerance under TRID?
Answer: Recording fees and third-party services selected from the lender's written provider list
Recording fees and shoppable third-party services where the borrower uses a provider from the lender's list may not increase more than 10% in aggregate.
If a consumer does not express intent to proceed within how many business days after the Loan Estimate is delivered, may the creditor issue a revised LE for any reason?
Answer: 10 business days
Once 10 business days pass without intent to proceed, the creditor is no longer bound by the original Loan Estimate.