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MLO NMLS Study Buddy
| Question | Answer |
|---|---|
| Why was TRID created? | To help borrowers understand the terms of their home financing transaction |
| Under TRID, what disclosures were combined to create the LE and CD? | The GFE and the INITIAL TIL created the LE; the HUD 1 and FINAL TIL created the CD |
| Under TRID a lender or broker may not charge the borrower any fees other than the ___ until the borrower has received the LE & the borrower has expressed __ | Credit report fee; intent to proceed. |
| What is the penalty for violating TRID? | $1,000,000 |
| What types of loans does TRID not apply to? Why? | TRID does not apply to HELOCS, reverse mortgages, mobile homes. They do not receive a LE or CD. |
| Under TRID, what are tolerances? | 0%, 10%, No limit. How much price change there can be between the LE and CD before it is a violation of the law. |
| what is zero tolerance? | TRAIL: Transfer taxes, Report changes, Appraisal, Interest rate, Loan origination fees. Fees that the customer CANNOT shop for. |
| What is a What are 10% tolerance fees? | These are fees that the lender chooses or borrower chooses from a list provided by the lender. TAG; Title insurance, Anything chosen from the list, Government recording fees. |
| What is no tolerance? | Things the borrower shops for on their own. HTTP; Hazard Ins, Title Insurance, Termite instpection, Per Diem |
| If the lender exceeds the tolerance levels, they must refund the borrower and give them the revised CD no later than ___ days after closing. | 60 calendar days. |
| Under TRID what are the 6 items that make a complete loan application? | ALIENS; Address, Loan amount Income Estimated value Name Social security number |
| ALIENS mnemonic | Aliens landed at my home. they wanted to borrow me and take me to a mountain. I had to IN-COME. Where they estimated my name and social security number. |
| When does the LE have to be provided to the borrower? | 3 business days after aliens have landed. |
| Who is ultimately responsible for giving the LE to the borrower? | The lender is responsible for the delivery of the LE, but mortgage brokers may provide the LE to the borrower. |
| For the LE, what is considered a business day? | Any day the creditor's office is open to the public. |
| The rate lock is found on what disclosure? | LE |
| The terms of a loan estimate are valid and binding for a period of how many business days? | 10 days |
| Redisclosure of the LE must take place within how many days of a valid change of circumstance? | 3 days |
| If the LE is mailed, it must be mailed how many days prior to consummation? | 7 days |
| Borrower must receive LE no later than how many days prior to consummation? | 4 days |
| Examples of valid CoC | Valid CoC: Appraisal Income Product (loan) Rate lock requested after LE was issued Info relied upon was inaccurate or changed Changed circumstances that changed sett charges Extraordinary event |
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1008912790101257