P5-28 Quiz

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Question 1 of 9

1. Question
A creditor issues an initial Loan Estimate based on the borrower’s stated annual income of $90,000. During underwriting, verified income is determined to be $80,000, increasing the cost of a settlement service beyond the applicable tolerance threshold.

How may the creditor address this situation?
- A) The creditor must absorb the increased costs
- B) The creditor may issue a revised Loan Estimate due to a changed circumstance
- C) The creditor may only disclose the change on the Closing Disclosure
- D) The creditor must cancel the loan application
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Question 2 of 9

2. Question
Which of the following is a valid changed circumstance that allows a creditor to provide and rely on a revised Loan Estimate?
- A) The creditor discovers a clerical error
- B) The consumer’s creditworthiness changes
- C) The creditor miscalculates recording fees
- D) The settlement agent requests higher compensation
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Question 3 of 9

3. Question
A property appraisal comes in lower than expected after the initial Loan Estimate is issued, resulting in increased settlement service costs.

How does this impact the creditor’s ability to revise the Loan Estimate?
- A) The creditor may revise only if the borrower consents
- B) The creditor must wait until closing to disclose the change
- C) The creditor may issue a revised Loan Estimate due to a property value change
- D) The creditor may not revise the Loan Estimate for appraisal issues
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Question 4 of 9

4. Question
A borrower initially qualifies for certain loan terms disclosed on the Loan Estimate but later becomes ineligible for those terms, resulting in higher settlement costs.

How may the creditor respond?
- A) By charging the borrower the difference at closing
- B) By waiving the increased costs
- C) By delaying the closing until rates improve
- D) By issuing a revised Loan Estimate reflecting the increased costs
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Question 5 of 9

5. Question
A consumer requests changes to loan terms after the initial Loan Estimate is provided, including a decision to lock the interest rate.

What action may the creditor take?
- A) No changes may be disclosed once the Loan Estimate is issued
- B) The creditor may use a revised Loan Estimate due to the consumer’s request
- C) The creditor must issue a Closing Disclosure immediately
- D) The creditor may change fees only at settlement
Correct

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Question 6 of 9

6. Question
A consumer receives an initial Loan Estimate but does not indicate intent to proceed until more than 10 days after delivery.

How may the creditor handle fee disclosures?
- A) The creditor must withdraw the loan offer
- B) The creditor must honor the original Loan Estimate
- C) The creditor may disclose changes only on the Closing Disclosure
- D) The creditor may issue a revised Loan Estimate
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Question 7 of 9

7. Question
A loan involves new construction, and settlement will occur more than 60 calendar days after the initial Loan Estimate was provided.

What disclosure action is permitted?
- A) A revised Loan Estimate may be issued due to timing
- B) No revised disclosures are allowed
- C) Only a Closing Disclosure may reflect changes
- D) Fees must remain frozen until closing
Correct

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Question 8 of 9

8. Question
During the closing process, a borrower receives an email instructing them to send their down payment to a new wiring account at the last minute.

According to CFPB warnings, what risk does this scenario illustrate?
- A) Appraisal fraud
- B) Recording fee manipulation
- C) Legitimate last-minute settlement adjustments
- D) Sophisticated phishing scams targeting closing funds
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Question 9 of 9

9. Question
Why has the CFPB emphasized consumer awareness during the closing process regarding wiring instructions?
- A) Because settlement agents are no longer regulated
- B) Because wiring instructions must be verbal
- C) Because creditors frequently change wiring instructions
- D) Because scammers increasingly divert closing funds through phishing schemes
Correct

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