Chapter 1
Federal Mortgage Laws and Consumer Protection Regulations
Course: Safe Mlo Prep
Subject: Safe Mlo Prep
Chapter: Mortgage Loan Origination Activities
OVERVIEW
The origination process begins the moment a borrower makes contact with a lender. From that first interaction, specific compliance obligations and disclosure timelines are immediately triggered. Understanding exactly what starts the clock — and what must happen within defined timeframes — is one of the most tested areas in Chapter IV.
- The Six Application Elements — TRID Trigger
Under TRID, a lender must issue a Loan Estimate within 3 business days of receiving all six of the following application elements:
- Borrower's name
- Borrower's income
- Borrower's Social Security number
- Property address
- Estimated property value
- Loan amount requested
These six elements — and only these six — constitute a mortgage loan application under TRID. Once all six are received, the 3-business-day clock for the Loan Estimate starts immediately. A lender cannot delay issuing the LE by requesting additional information beyond these six elements.