Note: The Orientation part of this course is not part of the ADRE Continuing Education Requirement. This section is for informational purposes only regarding this website and information on the instructors.
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An application triggers an obligation to provide a Loan Estimate (LE). The strict six bucket definition of an application is:
A ‐ Address
L ‐ Loan Amount
I ‐ Income
E ‐ Estimated property value
N ‐ Name
S ‐ Social Security Number
NOTE: Once the broker received the six pieces of information listed above, there is an application as defined by TRID.
The new regulation imposes 2 separate definitions of business day.
Business Day (Loan Estimate):
A day on which the creditor’s (Lender) offices are open to the public for carrying on substantially all of its business functions. This means you WILL NOT include Saturdays in the count.
Business Day (Closing Disclosure):
All calendar days except Sundays and legal public holidays. This means you WILL include Saturdays in the count.
Lenders are generally bound by the LE, provided by the Broker to the consumer within three business days of the application, and may not issue revisions if they later discover technical errors, miscalculations, or underestimations of charges.
Lenders may issue a revised LE only with a valid changed circumstance defined as:
- An extraordinary event beyond the control of any interested party or
other unexpected events specific to the consumer or transaction.
- Information specific to the consumer or transaction that the creditor relied
upon when providing the Loan Estimate and that was inaccurate or changed
after the disclosures were provided.
- New information specific to the consumer or transaction that the creditor did
not rely on when providing the Loan Estimate.
Closing Disclosure (CD):
The new closing document that replaces the final TIL and the HUD‐1. The lender must provide to a consumer at least three (3) business days before closing. There are three changes to disclosures that require a new waiting period if they become
inaccurate before consummation. The borrower must receive a new CD and an additional
three business day waiting period after receipt of the new form.
The 3 changes are as follows:
- If the lender makes changes to the annual percentage rate (APR) greater than an
1/8 to a fixed rate loan and a ¼ to an adjustable loan.
- If the loan product changes; as an example from a fixed to an ARM or vice versa.
- If a prepayment penalty is added that causes the required prepayment penalty
statement to become inaccurate.
The time that a consumer becomes contractually obligated on a credit transaction. (Not necessarily the same as close of escrow)
Delivery Methods for Disclosures:
- By Mail ‐ Placing the Loan Estimate in the mail within 3 business days complies
with the regulation. The applicant is considered to have received the Loan Estimate 3 business days after it is placed in the mail. In the case of mail delivery, the creditor may consider the Loan Estimate delivered earlier than three days if
the creditor has evidence of this. A signed receipt by the consumer for
overnight delivery would be evidence that would support a claim of early
- Electronic ‐ Electronic delivery means sending the disclosures using a secure email delivery method.
- In Person – The disclosure may be delivered in person. The Loan Estimate must be delivered to the borrower within the 3-day requirement.
Close of Escrow:
The consummation of a real estate transaction, when the seller delivers title to the buyer in exchange for payment by the buyer of the purchase price. Pursuant to the Arizona Association of REALTORS® Residential Resale Real Estate Purchase Contract, close of escrow “shall occur when the deed is recorded at the appropriate county recorder’s office.”
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