A borrower applies for a mortgage on Monday. By what day must the lender provide the Loan Estimate under TILA?
Correct Answer
C) Thursday
Under TILA/Regulation Z Section 1026.19(e), creditors must provide the Loan Estimate within 3 business days after receiving a complete application. If the application is received on Monday, the Loan Estimate must be provided by Thursday (Tuesday, Wednesday, Thursday = 3 business days).
Why This Is the Correct Answer
Under TILA/Regulation Z Section 1026.19(e), creditors must provide the Loan Estimate within 3 business days after receiving a complete application. If the application is received on Monday, the Loan Estimate must be provided by Thursday (Tuesday, Wednesday, Thursday = 3 business days).
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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On the Loan Estimate, which of the following must be disclosed in the 'Other Costs' section even if the amount is unknown at the time of application?
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