Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

When a clerical numerical error occurs on the Closing Disclosure, the mortgage loan originator (MLO) is required to deliver a revised Closing Disclosure, which may necessitate a new waiting period. This is because the Closing Disclosure must accurately reflect the final terms of the loan and any changes made necessitate that the borrower is given proper notice and time to review the corrected information.

A clerical error, even though it may not significantly alter the terms or costs of the loan, still requires a revised document because it could potentially lead to misunderstandings about the loan's terms. The revised disclosure needs to be provided to the borrower, ensuring they have all the needed information before closing the loan. This practice is intended to protect consumers and maintain transparency throughout the lending process.

Applying a new waiting period allows the borrower adequate time to review the changes to the disclosure, reinforcing the commitment to fair lending practices and compliance with regulatory requirements.