Mortgage Loan Originator (MLO) Licensing Practice Test

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Prepare for the Mortgage Loan Originator (MLO) Licensing Test. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to succeed on your exam!

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What is the time frame in which a corrected Closing Disclosure is required after the discovery of an inaccurate fact?

  1. 15 days

  2. 30 days

  3. 60 days

  4. 90 days

The correct answer is: 60 days

A corrected Closing Disclosure is required within a specific time frame when an inaccuracy is discovered. The correct answer, which indicates a 60-day window, stems from regulations established by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). These regulations emphasize the importance of providing accurate and timely information to consumers in order to facilitate informed decision-making during the closing process. When inaccuracies are identified, a corrected Closing Disclosure must be issued within 60 days to ensure that the borrower is informed of the correct information well in advance of their loan closing. This requirement helps maintain transparency and trust in the lending process. Understanding this timeframe is crucial for lenders and mortgage loan originators to ensure compliance with federal regulations and to avoid potential penalties.