By how many business days must early disclosures be provided to the consumer after receiving a loan application?

By how many business days must early disclosures be provided to the consumer after receiving a loan application?

• A. 2 business days
• B. 3 business days
• C. 5 business days
• D. 1 business day

Answer: (B)

The requirement to provide early disclosures is set by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). According to these regulations, lenders must provide the borrower with a Loan Estimate (LE) within three business days after receiving a complete loan application. This is crucial because these early disclosures inform the consumer about the key terms of the mortgage, the estimated loan costs, and other important figures, allowing them to make informed decisions. The timeline for delivering these disclosures ensures that borrowers have adequate time to review the terms and conditions before proceeding further with the loan process. In summary, the correct answer is three business days, as this timeframe is established to promote transparency and protect consumers in the mortgage lending process.

The requirement to provide early disclosures is set by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). According to these regulations, lenders must provide the borrower with a Loan Estimate (LE) within three business days after receiving a complete loan application.

This is crucial because these early disclosures inform the consumer about the key terms of the mortgage, the estimated loan costs, and other important figures, allowing them to make informed decisions. The timeline for delivering these disclosures ensures that borrowers have adequate time to review the terms and conditions before proceeding further with the loan process.

In summary, the correct answer is three business days, as this timeframe is established to promote transparency and protect consumers in the mortgage lending process.