Question 29
Domain 2: Mortgage Loan Origination ActivitiesWhich of the following would require a new 3-day waiting period after the initial Closing Disclosure is provided?
Correct answer: B
Explanation
A change from a fixed-rate loan to an adjustable-rate loan is a change in the loan product, which is a “changed circumstance” that can require a revised Closing Disclosure and a new 3-day waiting period. The borrower must receive the revised disclosure and then wait three business days before consummation when the APR or loan product changes.
Why each option is right or wrong
A. The recording fees increased by 5%
B. The loan product changed from fixed rate to adjustable rate
Under TRID, a revised Closing Disclosure triggers a new 3-business-day waiting period only for certain changes, including a change in the loan product. 12 C.F.R. § 1026.19(f)(2)(ii) requires redisclosure and a fresh 3-business-day wait when the product changes from one type of loan to another, such as from a fixed-rate structure to an adjustable-rate structure, because that alters the terms the borrower is deciding to accept. The other common revisions do not restart the clock unless they fall into the specific categories listed in the rule.
C. The estimated property value was revised
D. The borrower requested a different closing date