A borrower calls an MLO at 9 PM on a Friday requesting immediate disclosure of their APR calculation methodology for a loan they applied for earlier that week. The MLO has not yet provided the Loan Estimate. What is the MLO's obligation regarding this request?
Correct Answer
B) Must provide the Loan Estimate within 3 business days, which contains the required APR disclosure
Under TRID regulations (12 CFR 1026.19(e)), lenders must provide the Loan Estimate within 3 business days of receiving an application. The APR and its calculation methodology are disclosed through this required document, not through separate communications. The MLO cannot be required to provide piecemeal disclosure information outside of the regulatory framework.
Why This Is the Correct Answer
Under TRID regulations (12 CFR 1026.19(e)), lenders must provide the Loan Estimate within 3 business days of receiving an application. The APR and its calculation methodology are disclosed through this required document, not through separate communications. The MLO cannot be required to provide piecemeal disclosure information outside of the regulatory framework.
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Previous Question
A borrower's loan application shows an estimated property value of $400,000. The appraisal comes back at $375,000, requiring a higher down payment. This occurs 5 days after the original Loan Estimate. What must the lender do?
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