Question 1

Under TRID, which set of information is sufficient to create an application and trigger the Loan Estimate timing requirement?

Accepted Answer

TRID treats an application as received when the creditor has the consumer's name, income, Social Security number to obtain credit, property address, estimate of value, and mortgage loan amount sought. Once these six pieces are received, the Loan Estimate timing rule is triggered.

Question 2

How many business days does a creditor generally have to deliver or place in the mail the Loan Estimate after receiving a TRID application?

Accepted Answer

Under TRID, the Loan Estimate generally must be delivered or placed in the mail within 3 business days after application. This timing rule is one of the most heavily tested mortgage disclosure rules.

Question 3

When must the borrower generally receive the Closing Disclosure?

Accepted Answer

TRID requires the borrower to receive the Closing Disclosure at least 3 business days before consummation. This waiting period is intended to give the borrower time to review final terms and costs.

Question 4

Before a borrower receives the Loan Estimate and indicates an intent to proceed, which fee may the creditor generally charge?

Accepted Answer

Before the consumer receives the Loan Estimate and indicates an intent to proceed, the creditor generally may not impose fees except for a bona fide and reasonable credit report fee. This prevents creditors from locking borrowers in too early.

Question 5

A borrower receives a Loan Estimate on Tuesday. On Wednesday the borrower says, 'Yes, please move forward.' What has the borrower done for TRID purposes?

Accepted Answer

After receiving the Loan Estimate, the borrower may communicate an intent to proceed with the transaction. Only then may the creditor impose fees other than a credit report fee, unless another exception applies.

Question 6

Which change generally requires a new 3-business-day waiting period and a corrected Closing Disclosure?

Accepted Answer

A new 3-business-day waiting period is generally triggered if the APR becomes inaccurate beyond tolerance, the loan product changes, or a prepayment penalty is added. Minor clerical changes do not restart the waiting period.

Question 7

If a prepayment penalty is added after the Closing Disclosure was first delivered, what is the usual TRID result?

Accepted Answer

Adding a prepayment penalty is one of the specific events that generally triggers a new 3-business-day waiting period under TRID. The borrower must receive an updated Closing Disclosure and time to review it.

Question 8

A lender receives all six pieces of information on Monday. On Tuesday, the lender asks the borrower for bank statements before sending the Loan Estimate. Under TRID, what is the best answer?

Accepted Answer

Once the creditor has the six TRID application items, it cannot delay the Loan Estimate by insisting on additional documents such as bank statements. The LE timing is tied to receipt of the application, not completion of underwriting.

Question 9

A fixed-rate loan becomes an adjustable-rate loan after the initial Closing Disclosure was delivered. What must happen under TRID?

Accepted Answer

A change in loan product is one of the specific events that generally triggers a new 3-business-day waiting period. The borrower must have time to review the updated Closing Disclosure before consummation.

Question 10

A lender quoted a $1,500 origination charge on the Loan Estimate, but the Closing Disclosure shows $1,800 with no valid changed circumstance. What is the proper TRID outcome?

Accepted Answer

Origination charges are subject to zero tolerance absent a valid basis for revision. If the lender increased the fee without a valid changed circumstance, the excess must be cured and cannot be charged to the borrower.

TRID Practice Questions

More NMLS SAFE MLO Exam Topics