### What is the primary purpose of the Closing Disclosure (CD)? - [x] To detail the costs associated with a real estate transaction - [ ] To appraise the property's value - [ ] To serve as the property's title deed - [ ] To replace the loan application form > **Explanation:** The Closing Disclosure (CD) is a government-mandated form that details the actual costs associated with a real estate transaction. It provides a comprehensive breakdown of all charges for the borrower’s review. ### When should the borrower receive a copy of the Closing Disclosure (CD)? - [ ] One week prior to closing - [x] At least one day prior to closing - [ ] On the day of closing - [ ] One month prior to closing > **Explanation:** The borrower should receive a copy of the Closing Disclosure (CD) at least one day before the closing to allow sufficient time to review and ensure the accuracy of the figures. ### Why is it important for all parties to examine the Closing Disclosure (CD)? - [x] To check for inaccuracies and ensure the charges are correct - [ ] To negotiate the loan terms further - [ ] To finalize the purchase agreement - [ ] To confirm the property's appraisal value > **Explanation:** It’s important for all parties to examine the Closing Disclosure (CD) to identify any errors or discrepancies in the charges, allowing corrections to be made before the closing. ### What figure comparison is facilitated by the Closing Disclosure (CD)? - [x] Figures from the Loan Estimate (LE) - [ ] Figures from the Homeowners Association (HOA) - [ ] Figures from the appraisal report - [ ] Figures from the credit report > **Explanation:** The Closing Disclosure (CD) includes figures from the Loan Estimate (LE), allowing borrowers to compare the initially quoted loan charges with the actual charges. ### What was the former name of the Closing Disclosure (CD)? - [ ] Final Settlement Sheet - [ ] Property Transaction Report - [ ] Mortgage Settlement Agreement - [x] HUD-1 Uniform Settlement Statement > **Explanation:** The Closing Disclosure (CD) was formerly known as the HUD-1 Uniform Settlement Statement. ### What should a borrower do if they find discrepancies on the Closing Disclosure (CD)? - [x] Contact the settlement agent for clarification or correction - [ ] Sign the document as is - [ ] Ignore the discrepancies - [ ] Delay the closing indefinitely > **Explanation:** If there are discrepancies on the Closing Disclosure (CD), the borrower should contact the settlement agent to correct these inaccuracies before proceeding with the closing. ### As of what year are settlement agents required to include figures from the Loan Estimate (LE) in the Closing Disclosure (CD)? - [ ] 2001 - [ ] 2005 - [x] 2010 - [ ] 2015 > **Explanation:** The requirement for settlement agents to include figures from the Loan Estimate (LE) in the Closing Disclosure (CD) came into effect in 2010. ### What document was used for initial loan charge estimates before the Loan Estimate (LE)? - [ ] Truth-in-Lending Disclosure (TIL) - [ ] Mortgage Initial Estimate (MIE) - [x] Good-Faith Estimate (GFE) - [ ] Initial Loan Disclosure (ILD) > **Explanation:** Before the Loan Estimate (LE), the Good-Faith Estimate (GFE) was used for providing initial loan charge estimates. ### What is the main benefit of comparing the Loan Estimate (LE) with the Closing Disclosure (CD)? - [ ] To finalize the closing date - [ ] To negotiate a lower interest rate - [ ] To reduce the loan amount - [x] To identify and correct any variations in quoted and actual loan charges > **Explanation:** Comparing the Loan Estimate (LE) with the Closing Disclosure (CD) helps identify any variations between the quoted and actual loan charges, allowing for necessary corrections before closing. ### What is the role of the settlement agent regarding the Closing Disclosure (CD)? - [x] To prepare and include accurate financial figures - [ ] To appraise the property - [ ] To provide home inspection services - [ ] To approve the loan application > **Explanation:** The settlement agent’s role involves preparing the Closing Disclosure (CD) with accurate financial figures and comparing them with the Loan Estimate (LE) for consistency. ### The Closing Disclosure (CD) is mandated by which entity? - [x] Government - [ ] Real estate agencies - [ ] Private lenders - [ ] Federal Reserve > **Explanation:** The Closing Disclosure (CD) is a government-mandated document ensuring transparency and accuracy in the costs associated with a real estate transaction. ### How many pages does the Closing Disclosure (CD) have? - [ ] One page - [ ] Two pages - [x] Three pages - [ ] Four pages > **Explanation:** The Closing Disclosure (CD) is a three-page document detailing the costs associated with a real estate transaction. ### Why was the HUD-1 form replaced by the Closing Disclosure (CD)? - [x] To improve transparency and accuracy of loan charges - [ ] To reduce the cost of real estate transactions - [ ] To simplify property appraisals - [ ] To shorten the closing process > **Explanation:** The HUD-1 form was replaced by the Closing Disclosure (CD) to improve transparency and accuracy regarding the actual charges associated with real estate transactions.