Free Real Estate Licensing Virginia Real Estate Salesperson Exam Dumps

Comprehensive Detailed Explanation

When the Consumer Financial Protection Bureau (CFPB) implemented the TRID Rule (TILA-RESPA Integrated Disclosure) in 2015:

The Good Faith Estimate (GFE) and initial TILA disclosure were replaced by the Loan Estimate (LE).

The HUD-1 Settlement Statement and final TILA disclosure were replaced by the Closing Disclosure (CD).

Purpose: Simplify borrower understanding, increase transparency, and reduce last-minute surprises.

Reference (Virginia Real Estate & Federal):

TRID Rule (12 CFR Part 1026 -- Regulation Z)

Virginia Real Estate Principles -- Financing & Closing section

A490-02REGS.pdf -- Loan disclosure requirements

A promissory note is a borrower's written promise to repay a loan. It is made enforceable by linking it to a security instrument:

Mortgage (in mortgage states), or

Deed of Trust (in Virginia).

The security instrument gives the lender a claim against the property as collateral in case of borrower default.

Other options:

(A) Disbursement of funds is part of the loan process, not security.

(C) Statute of Frauds requires certain contracts to be in writing but does not secure a note.

(D) Mortgage-backed securities are investment vehicles, not direct collateral for a note.

Reference (Virginia Real Estate):

Virginia Code 55.1-3200 et seq. (Deeds of Trust and Mortgages)

Virginia Real Estate Principles -- Financing section

A490-02REGS.pdf -- Loan instruments curriculum