TRID Part 2

Question 1

What is the Loan Estimate, and who is tasked with providing the it?

Answer 1

The Loan Estimate is an estimate of the total cost at closing; and is provided to the borrower by the Creditor.

Question 2

When must the Loan Estimate be delivered, and how long must the terms be available for?

Answer 2

1. ) It must be delivered or mailed within 3 business days of receipt of complete application; or if revised, than 4 days prior to loan consummation.
2. ) The terms must be available for 10 business days.

Question 3

According to the Loan Estimate, what is TIP, and what is APR?

Answer 3

1. ) TIP stands for Total Interest Percentage (expressed in percentage form);
2. ) APR stands for Annual Percentage Rate. This is the total interest + fees expressed in percentage form.

Question 4

Where is the Rate Lock found?

Answer 4

Any information concerning the Rate Lock is found only on the Loan Estimate.

Question 5

What is the definition of a “business day” according to “initial” Loan Estimate?

Answer 5

Any day on which a creditor is open to the public for the purpose of conducting reg. business.

Question 6

What is the definition of a “business day” according to TILA?

Answer 6

Any day except Sunday and Federal Holidays.

Question 7

What is the definition of a “business day” for receiving a Revised Loan Estimate, or receiving the Closing Disclosure?

Answer 7

Any Day except Sunday and Federal Holidays.

Question 8

When receiving a Revised Loan Estimate, when must the borrower receive it?

Answer 8

No later than 3 business day after the creditor learns of the reason for the revision.

Question 9

Once the borrower has received the Closing Disclosure, they may not receive a revised LE—Fact or False?

Answer 9

Fact.

Question 10

What is a valid reason for receiving a Revised Loan Estimate?

Answer 10

1. ) An event is beyond the control of the creditor or borrower—such as a natural disaster which increased settlement cost.
2. ) Info that was known or provided at the time of the application changed—such as the interest rate increased, or loan terms have changed.
3. ) New info regarding the borrower or the loan that the creditor did not rely on when supplying the Loan Estimate—such as the borrower becoming unemployed prior to closing.