[NMLS SAFE] 6, TRID Part 1: The Application and the Loan Estimate

Lesson six of the free Quibank NMLS SAFE course. TRID — the TILA-RESPA integrated disclosures. No topic generates more exam questions than these deadlines, so we will take two lessons. Today: what counts as an application, and the Loan Estimate.

TRID merged the old TILA and RESPA disclosures into two documents: the Loan Estimate near the start, and the Closing Disclosure at the end. Everything in this lesson hangs off one moment — the moment you receive an application. Because that is what starts the clock. And TRID defines an application as exactly six pieces of information: the consumer's name, income, Social Security number to pull credit, the property address, an estimate of the property's value, and the loan amount sought.

There used to be a seventh, catch-all item — any other information the creditor deems necessary. It was eliminated. Six items, and the clock is running. The exam will test that removed seventh item.

Which set constitutes an application? The answer is the clean list of six. The option that adds anything else the creditor deems necessary describes the old rule. And options built on credit score, purchase price, or a signed loan form are inventions — none of those six items is a credit score.

Now the Loan Estimate's two deadlines. Deadline one: the creditor must deliver the Loan Estimate, or place it in the mail, no later than three business days after receiving the application. Deadline two: consummation may not happen until the seventh business day after the Loan Estimate is delivered or mailed. Three days to send it.

Seven days of waiting before closing. Try the paired question. A consumer submits a complete application on Monday. Which pair of deadlines applies?

Delivered or mailed within three business days of the application, and received no later than seven business days before consummation. The classic wrong answer flips them — seven days to deliver, three to wait. Keep the order straight: three to send, seven to close. A memory hook: the numbers run three, then seven — the paperwork moves fast, the closing waits.

If an answer choice lets the borrower close three days after the Loan Estimate went out, it is wrong. If it says the Loan Estimate can arrive at consummation, it is very wrong. Recap. An application is six items — name, income, Social Security number, property address, estimated value, loan amount — and the catch-all is gone.

The Loan Estimate goes out within three business days. Consummation waits until the seventh business day after it is delivered or mailed. Next lesson: TRID part two — the Closing Disclosure, the three changes that restart its clock, and the tolerance buckets. Practice today's rules free at quibank.com/mlo.

See you in lesson seven.