NSA Key Mortgage Closing Documents 2

Question 1

What does the Closing Disclosure replace under the TRID rule effective October 2015?

Accepted Answer

The HUD-1 Settlement Statement and final Truth in Lending disclosure

Answer

The Promissory Note and Deed of Trust

Answer

The Initial Escrow Statement and Privacy Notice

Answer

The Compliance Agreement and Name Affidavit

Question 2

On the Closing Disclosure, which page contains the loan terms summary including loan amount, interest rate, and monthly principal & interest?

Accepted Answer

Page 1

Answer

Page 2

Answer

Page 3

Answer

Page 4

Question 3

How many business days before consummation must a borrower receive the Closing Disclosure under TRID?

Accepted Answer

3 business days

Answer

1 business day

Answer

5 business days

Answer

7 business days

Question 4

The Promissory Note is primarily a(n):

Accepted Answer

Personal promise by the borrower to repay the debt

Answer

Security instrument that pledges the property as collateral

Answer

Agreement between buyer and seller on purchase price

Answer

Government disclosure about loan costs

Question 5

Which party signs the Promissory Note but typically does NOT sign the Deed of Trust on a purchase transaction?

Accepted Answer

A non-titled borrower who is financially obligated but not on title

Answer

The non-borrowing spouse

Answer

A co-borrower

Answer

The seller

Question 6

What is the purpose of the Initial Escrow Disclosure Statement at closing?

Accepted Answer

To itemize the projected monthly payments for taxes and insurance held in escrow

Answer

To authorize the lender to sell the loan on the secondary market

Answer

To notify the borrower of their right to cancel the loan

Answer

To confirm the borrower's income and employment status

Question 7

The Transfer of Servicing Disclosure informs the borrower that:

Accepted Answer

The lender has the right to transfer loan servicing to another company

Answer

The title company may transfer the escrow funds to a third party

Answer

The notary is transferring signing authority to a backup agent

Answer

Property taxes are transferred to a new escrow servicer