Discuss Real Estate Licensing Virginia Real Estate Salesperson Exam Topic 4 Question 5

Your client is buying a home. At closing, they pull you aside and whisper that the documents they're being asked to sign don't match the Closing Disclosure - suddenly, there are thousands of dollars of new fees. Is this a red flag for predatory lending? Why or why not?

ANo. It's normal for lenders to have significant last-minute changes to their fees.

BYes. The fees should match what was on the Closing Disclosure. Otherwise, that's a major red flag.

CYes. No client should be paying fees at closing. Those should always be pre-paid to the lender at least three days in advance.

DNo. As long as the title company has no objections, it doesn't matter if the Closina Disclosure and the real closina documents match.

Suggested Answer: B

Under the TRID Rule (TILA-RESPA Integrated Disclosure), lenders must provide borrowers with a Closing Disclosure (CD) at least 3 business days before closing.

The numbers on the CD and closing documents must match (with very limited tolerance ranges).

Significant last-minute fee increases are a red flag for predatory lending or RESPA/TILA violations.

The client should not sign until discrepancies are resolved.

Reference (Virginia Real Estate & Federal Law):

TRID (12 CFR 1026.19(f))

Virginia Real Estate Principles -- Financing and Settlement section

A490-02REGS.pdf -- Loan closing requirements

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13 comments · newest first

Bettyann 10 months ago

I had a similar experience, and it turned out fine. Just double-check!

Shawna 10 months ago

Actually, fees can change, but not by thousands. That's concerning.

Charlene 10 months ago

Wait, what? New fees at closing? That sounds sketchy to me.

Malcolm 10 months ago

Nah, last-minute changes happen all the time. It's not unusual.

Malcom 11 months ago

That's definitely a red flag! Fees should match the Closing Disclosure.

Tenesha 11 months ago

I thought we learned that clients should be aware of all fees upfront, but I’m confused about whether it’s really a red flag if the title company is okay with it.

Phuong 11 months ago

I feel like I read somewhere that fees should be consistent with the Closing Disclosure. If they’re not, it raises a lot of questions about the lender's practices.

Loreta 11 months ago

I’m not sure, but I think we practiced a similar question where last-minute changes were considered normal. Could it be that this is just a common issue?

Armanda 12 months ago

I remember discussing how discrepancies between the Closing Disclosure and final documents can indicate something shady, so I think it’s definitely a red flag.

Eladia 12 months ago

I'm pretty confident this is a red flag. The Closing Disclosure is supposed to give the client a clear picture of all the costs, so if that doesn't match the final docs, that's a major problem. I'd advise the client to be very cautious.

Norah 12 months ago

I'm a bit confused on this one. I thought the whole point of the Closing Disclosure was to prevent this kind of thing from happening. If the final documents don't match, that seems really sketchy to me. I'd want to know why.

Kimi 1 year ago

Whoa, that's concerning. Significant last-minute changes to the fees? That definitely raises some red flags about potential predatory lending practices. I'd want to get to the bottom of what's going on there.

Ocie 1 year ago

Hmm, this is a tricky one. I'd want to really dig into the details and understand exactly what changed on the closing documents. If the fees don't match the Closing Disclosure, that seems like a major red flag to me.

Real Estate Licensing Virginia Real Estate Salesperson Exam - Topic 4 Question 5 Discussion