Mortgage Loan Origination Activities Flashcards

Under TRID, which set of items makes up an 'application' that triggers the Loan Estimate requirement?

Answer: Name, income, Social Security number, property address, estimated property value, and loan amount

The six items are consumer name, income, SSN, property address, estimated value, and loan amount.

A creditor receives a completed application on a Monday. By when must the Loan Estimate be delivered (no federal holidays)?

Answer: Within 3 business days of receipt of the application

The Loan Estimate is due within 3 business days after the creditor receives the application.

Which fee is subject to ZERO tolerance on the Loan Estimate?

Answer: The lender's origination charge

Lender origination charges, transfer taxes, and fees paid to the creditor or its affiliates cannot increase absent a valid changed circumstance.

Which compensation arrangement is prohibited under the Loan Originator Compensation rule?

Answer: Paying an originator a commission that varies based on the interest rate of the loan

Compensation may not be based on the terms of a transaction other than the loan amount.

How far in advance of consummation must the consumer RECEIVE the Closing Disclosure?

Answer: At least 3 business days

The CD must be received at least 3 business days before consummation.

Which change after delivery of the Closing Disclosure requires a new 3-business-day waiting period?

Answer: The APR becomes inaccurate beyond tolerance (increase of more than 1/8 of 1% on a regular loan)

An inaccurate APR, a changed loan product, or an added prepayment penalty restarts the 3-day wait.

Under the ECOA valuations rule, when must a creditor give the applicant a copy of the appraisal?

Answer: Promptly after completion, or at least 3 business days before consummation, whichever is earlier

Copies of appraisals must be provided promptly, and no later than 3 business days before consummation.