TRID Rule Summary Quiz

<p>The lender who is originating the mortgage. (B)</p> Signup and view all the answers

<p>Truth in Lending Act (TILA). (A)</p> Signup and view all the answers

<p>October 3, 2015 (B)</p> Signup and view all the answers

<p>Loans secured by a manufactured home not permanently attached to land. (D)</p> Signup and view all the answers

<p>To establish standardization and simplify the mortgage disclosure process for consumers, and lenders. (B)</p> Signup and view all the answers

<p>A &amp; C (C)</p> Signup and view all the answers

<p>Your Home Loan Toolkit (C), Affiliated Business Disclosure (D)</p> Signup and view all the answers

<p>To explain the process of obtaining a mortgage loan. (C)</p> Signup and view all the answers

<p>Annual Escrow Account Statement (A), Initial Escrow Account Statement (C)</p> Signup and view all the answers

<p>If the borrower requests it. (C)</p> Signup and view all the answers

<p>When the lender discovers a title issue not previously considered. (D)</p> Signup and view all the answers

<p>4 days (A)</p> Signup and view all the answers

<p>Issuing a new Closing Disclosure with corrected figures. (C)</p> Signup and view all the answers

<p>On the day it is delivered in person, provided it is signed and dated. (C)</p> Signup and view all the answers

<p>The borrower must demonstrate that the emergency is bona fide and will be alleviated by closing sooner. (C)</p> Signup and view all the answers

<p>3 business days (D)</p> Signup and view all the answers

<p>When the lender discovers a minor typographical error in the initial disclosure. (C)</p> Signup and view all the answers

<p>Upon consummation of the loan (D)</p> Signup and view all the answers

<p>Page 3 (B)</p> Signup and view all the answers

<p>To show final fees and charges by the same categories as the Loan Estimate. (B)</p> Signup and view all the answers

<p>Loan terms, property security details, and information about the escrow account. (B)</p> Signup and view all the answers

<p>A breakdown of payments to creditors made from loan proceeds. (D)</p> Signup and view all the answers

<p>To provide a final summary of the loan terms and costs before the borrower signs the closing documents. (C)</p> Signup and view all the answers

<p>The Closing Disclosure for a refinance includes a breakdown of payments to creditors made from the loan proceeds. (D)</p> Signup and view all the answers

<p>It establishes new tolerance limits based on the final actual figures disclosed in the revised Closing Disclosure. (B)</p> Signup and view all the answers

<p>Prepaid interest (A)</p> Signup and view all the answers

<p>All calendar days except Sundays and legal public holidays (A)</p> Signup and view all the answers

<p>At loan closing (C)</p> Signup and view all the answers

<p>A discount offered by the lender to the borrower (C)</p> Signup and view all the answers

<p>The borrower has indicated their willingness to move forward with the loan (A)</p> Signup and view all the answers

<p>To determine the total amount of money the borrower will need to close the loan (A)</p> Signup and view all the answers

<p>An unexpected event beyond the control of the parties occurs (A)</p> Signup and view all the answers

<p>To provide the borrower with an estimate of the total closing costs of the loan (D)</p> Signup and view all the answers

<p>Detailed breakdown of the borrower's monthly mortgage payments (C)</p> Signup and view all the answers

<p>Loan Estimate and Closing Disclosure (A)</p> Signup and view all the answers

<p>Within three business days of receiving the consumer's loan application (D)</p> Signup and view all the answers

<p>A list of third-party service providers that the borrower can use to close the loan (C)</p> Signup and view all the answers

<p>Borrower's name, gross monthly income, Social Security number, property address, property value estimate, mortgage loan amount sought (C)</p> Signup and view all the answers

<p>The lender must disclose the best possible estimate of fees and charges in the LE, even if they are subsequently different (B)</p> Signup and view all the answers

<p>Fees in this category can only change if there is a change of circumstances (D)</p> Signup and view all the answers

<p>To provide a good faith estimate of credit costs and transaction terms (C)</p> Signup and view all the answers

<p>The lender (C)</p> Signup and view all the answers

<p>If the lender determines the application will not be approved within three business days (A)</p> Signup and view all the answers

<p>Prepaid interest (C)</p> Signup and view all the answers

<p>Seven business days (A)</p> Signup and view all the answers

<p>Only if there is a change of circumstances (A)</p> Signup and view all the answers

<p>The borrower must have a bona fide personal financial emergency that will be alleviated by closing before the end of the waiting period (B)</p> Signup and view all the answers

<p>The borrower decides to proceed with the loan after the 10-day period following the delivery of the LE (D)</p> Signup and view all the answers

<p>A fee paid by the borrower to the lender for reducing the interest rate (D)</p> Signup and view all the answers

<p>Loan terms and conditions (B)</p> Signup and view all the answers

<p>RESPA and TRID are both related to mortgage loan disclosures, and some of their requirements overlap. (C)</p> Signup and view all the answers

<p>Lender-required services are chosen by the lender, while Lender-selected services are chosen by the borrower from a list provided by the lender (A)</p> Signup and view all the answers

<p>To provide the borrower with an estimate of the total cost of the loan, including both the loan amount and all associated fees and charges (A)</p> Signup and view all the answers

<p>APR is the annual interest rate, while TIP is the total interest paid over the life of the loan. (D)</p> Signup and view all the answers

<p>The lender must approve the borrower's choice, but may not be responsible for any issues with the provider (A)</p> Signup and view all the answers

<p>All of the above (D)</p> Signup and view all the answers

Federal law aimed at reducing risks in the financial system.

Real Estate Settlement Procedures Act, requires disclosure of settlement costs.

Truth in Lending Act, mandates clear disclosure of loan terms.

TILA-RESPA Integrated Disclosure rule simplifying loan disclosures.

Replaces Good Faith Estimate; provides loan costs before closing.

Final disclosure replacing HUD 1 statement; details all closing costs.

Consumer Financial Protection Bureau; enforces TRID and protects consumers.

TRID does not apply to certain loans like HELOCs and reverse mortgages.

A booklet explaining the LE, CD, and loan process, provided to applicants.

Disclosure required by RESPA naming affiliates and services provided by lenders.

Issued at closing to report escrowed taxes and insurance, updated annually.

Annual accounting of receipts and disbursements in the escrow account.

Lenders must provide a free copy of appraisals to borrowers after completion.

Rules that apply to certain loans under TILA but not RESPA.

The annual cost of borrowing expressed as a percentage including fees.

The total interest paid over the life of the loan as a percentage of the loan amount.

The moment a borrower becomes contractually obligated to the lender.

Days when the lender's offices are open for business.

All calendar days except Sundays and legal holidays.

A consumer's indication to move forward with a loan after receiving the Loan Estimate.

Extraordinary events affecting loan disclosures necessitating revisions.

Loan Estimate (LE) and Closing Disclosure (CD) that inform borrowers.

The Loan Estimate must be sent within three business days of application.

Occurs when six specific pieces of information are provided by the borrower.

A reasonable estimate of credit costs and transaction terms in the Loan Estimate.

Borrower can waive the 7-day waiting period in emergencies.

A three-page document detailing loan information and costs.

Contains general information about the loan type, terms, and costs.

Charges associated with obtaining a loan from a lender or third-party.

Fees paid to the lender for processing a new loan application.

Fees from providers not part of the lending institution, can be either shoppable or non-shoppable.

Payments made at closing to set up the borrower's escrow for taxes and insurance.

Amounts deducted from the total closing costs, given by the lender to the borrower.

Estimation of funds required from the borrower at closing after deducting certain costs.

Regulations governing disclosure of loan costs and fees to ensure transparency and good faith by lenders.

Charges that can only change if there is a change in circumstances, reflecting high limitations on increases.

Variance allowance for closing costs, permitting a maximum aggregate change of 10% from the original disclosure.

Charges that can change without limits, commonly including prepaid interest and property insurance premiums.

List provided by the lender with service options for items borrowers can shop for when obtaining a loan.

Situations allowing lenders to issue revised Loan Estimates based on valid changes to loan or borrower status.

Updated disclosure of loan terms issued within three business days after a valid change of circumstances.

Costs paid in advance, such as insurance or property taxes, included in the closing costs.

Insurance coverage required for borrowers to protect the property from damage.

When differences in charges between Loan Estimate and Closing Disclosure exceed allowed limits.

Methods lenders can use to fix tolerance violations, includes refunds or credits.

The Closing Disclosure must be received by the borrower at least three business days before consummation.

The borrower's right to cancel a transaction within three business days after receiving the Closing Disclosure.

Lenders must issue corrected Closing Disclosures if inaccuracies are discovered post-closing.

A mandatory waiting time after the borrower receives the Closing Disclosure before the loan can close.

Closing Disclosure reflects actual terms at closing, while Loan Estimate provides estimates before closing.

Specific information lenders must provide in the Closing Disclosure about the loan terms and fees.

A corrected Closing Disclosure is issued within three business days after the lender discovers inaccuracies.

The five-page format details loan terms, costs, and borrower's obligations in the Closing Disclosure.

The Closing Disclosure must include the final Annual Percentage Rate and other loan calculations.

Sellers and others can impact fees listed in the Closing Disclosure and affect total costs for the borrower.

Required documentation for waiving the three-day waiting period due to personal financial emergencies.