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Quiz: Test Your Knowledge Of The New Closing Disclosure Rules

A new government rule making major changes to the mortgage process — known as the “TILA-RESPA Integrated Disclosure” (TRID) rule — goes into effect in Fall 2015. This new rule will affect the loan signing process and the documents Notary signing agents work with during assignments. Are you ready for this change? Take our quiz and see how much you know about how TRID will affect you. (Detailed answers can be found below.)

 

ANSWERS:

1. Under TRID, lenders will consolidate information from the following documents into a single “Closing Disclosure”:

A. Deed of Trust and Right To Cancel

B. Truth-In-Lending (TIL) disclosure and HUD-1 Settlement Statement

C. Name Affidavit and HUD-1 Settlement Statement

D. All of the above

Answer: B. The part of the rule most likely to affect signing agents is the Closing Disclosure, which consolidates the Truth-in-Lending (TIL) disclosure and the HUD-1 Settlement Statement. The new forms are intended to simplify and clarify the loan process for borrowers and give them more time to review and ask questions about the terms of their loan.

2. TRID requires lenders to provide borrowers with the new Closing Disclosure form:

A. On the day the borrower signs

B. No later than 48 hours after the borrower signs

C. No later than seven business days before the borrower signs

D. No later than three business days before the borrower signs

Answer: D. TRID requires the Closing Disclosure to be received by the borrower at least three business days before the borrower becomes legally obligated under the loan — which often occurs when the note is signed. The rule is intended to give borrowers more time to review and better understand their loan terms before they fully commit.

3. TRID is currently scheduled to take effect on the following date in 2015:

A. September 27

B. October 3

C. November 11

D. December 31

Answer: B. October 3, 2015 is the day when the Consumer Financial Protection Bureau’s new mortgage disclosure rule goes into effect. TRID was originally scheduled for implementation August 1, but due to mortgage industry  concerns about implementing TRID, the CFPB postponed to give the industry more time to prepare.

4. True or False: After October 3, Notary signing agents will no longer see the HUD-1 Settlement Statement and Truth in Lending Disclosure.

A. True

B. False

ANSWER: False. The new TRID disclosures must be included in loans for which a borrower first applies beginning October 3. Loans in the pipeline before October 3 will contain a HUD-1 and Truth in Lending Statement, not the TRID disclosures. In addition, after October 3, certain types of loans – for example, home equity lines of credit and reverse mortgages – will not have a TRID disclosure but will retain the HUD-1 and Truth in Lending Disclosure.

18 Comments

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Dorothy

21 Sep 2015

I do not work with mortgages

Joanne Purvis

21 Sep 2015

All Notary's should receive an email of the changing of the new law, for their knowledge.

Audrey Jane Spaulding

21 Sep 2015

Its good to go over these rules again, The impact hasn't happened just yet, so I am trying hard to integrate what needs to happen now and what need to happen on Oct, 3rd, 2015

beba jozic-sholdes

21 Sep 2015

good preparation fo upcoming changes,thanks

Stephanie Powell

21 Sep 2015

thanks.

Eva Cannon

21 Sep 2015

Only the 1st question box came up for me to answer, then I couldn't go any further, but according to the answers below I'm up on the new deal.

Lorena Jones

21 Sep 2015

Continually educating is a great technique.

Sheila D. Thomas

23 Sep 2015

I appreciate the information this is good to have it sent out to review. With the borrower having the docs 3 days prior will we still need to make a second copy for the borrower when we go for the signing?

Karen H Sublett

24 Sep 2015

Thank you for providing informative and easy to understand information.

Marilyn Owens

25 Sep 2015

thanks for keeping us all up to date on our necessary knowledge. I am called by local banks to notarized home loan documents occasionally.

notaryrick@aol.com

22 Oct 2015

I would like to see a full size copy of the new 5 page form before I am actually using one. THANKS

National Notary Association

27 Oct 2015

Hello. This page has information about the new Closing Disclosure form: http://www.nationalnotary.org/knowledge-center/signing-agent-resources/signing-agent-tools/closing-disclosure

Donata

05 Apr 2016

Do not work with lending

Mary Winland

26 Apr 2016

just curious to know if there are any one on one classes that I can go too? Having a class over the computer is fine but for me, having a live class makes it easier for me to learn.

National Notary Association

29 Apr 2016

Hi Mary, thanks for reaching out. We only cover the Closing Disclosure rules in an online course at this time.

Tammy Shepherd

18 Jul 2016

I really like the fact that we are able to keep up on current rule changes

janette

20 Feb 2017

good quiz.. have never done a loan pkg. they are not offering enough to do it through signing companies unfortunatly

Terry Haas

28 Jun 2017

Absolutely fabulous !!! I love the quizzes.

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