Assessment and Evaluation Flashcards

Five days before closing, the buyer's loan approval is still conditioned on an incomplete verification of employment. How should the TC rate this file?

Answer: High priority, needing immediate follow-up with the lender and agent

Open loan conditions near the closing date threaten on-time funding and need close follow-up.

Which of the following is an early warning sign that a transaction may fall apart?

Answer: A party repeatedly misses responses during the contingency period

Unresponsive parties during contingencies often signal cold feet or unresolved problems.

Under TRID, the Closing Disclosure must be received by the borrower at least how long before consummation?

Answer: Three business days

TRID requires the borrower to receive the Closing Disclosure at least three business days before consummation.

When evaluating a seller's repair response, which item should the TC confirm is documented in writing?

Answer: Agreed repairs, credits, or price changes in a signed addendum

Repair agreements must be in a signed addendum to be enforceable and to show up correctly in closing figures.

A TC compares the final settlement statement with the purchase contract. Which discrepancy most needs correcting before signing?

Answer: The seller credit on the statement is $3,000 less than the amended contract states

Financial terms on the settlement statement must match the contract and all amendments.

Which approach gives the most objective review of a TC's accuracy over time?

Answer: Tracking the error rate found in periodic file audits

Audit error rates give measurable, repeatable data on accuracy.

The HOA resale package shows a pending special assessment. What should the TC do?

Answer: Flag it to the agents so responsibility for the assessment can be addressed

Special assessments affect costs, and the parties must agree on who pays them.