CMB Mortgage Lending & Loan Origination 2

Question 1

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

Accepted Answer

3 business days

Answer

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.

Question 2

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

Accepted Answer

Verified two-year employment history

Answer

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.

Question 3

How many business days before consummation must the consumer receive the Closing Disclosure?

Accepted Answer

At least 3 business days

Answer

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

Question 4

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

Accepted Answer

The APR becomes inaccurate by more than 1/8 of 1% on a regular transaction

Answer

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.

Question 5

Which charge falls in the zero-tolerance category under TRID?

Accepted Answer

Origination charges paid to the creditor

Answer

Fees paid to the creditor, mortgage broker, or their affiliates cannot increase at all from the Loan Estimate absent a valid changed circumstance.

CMB - Certified Mortgage Banker Practice Test

CMB - Certified Mortgage Banker Practice Test

CMB Mortgage Lending & Loan Origination 2