A borrower calls to discuss refinancing their current mortgage. During the conversation, the MLO provides specific rate quotes based on the borrower's stated income and property value. What disclosure obligation does this create?
Correct Answer
A) No disclosure required since no application was taken
Providing rate quotes during conversation, even with basic borrower information, does not constitute taking an application. The Loan Estimate requirement under TRID is only triggered when a complete application is received, as defined in 12 CFR 1026.19(e).
Why This Is the Correct Answer
Providing rate quotes during conversation, even with basic borrower information, does not constitute taking an application. The Loan Estimate requirement under TRID is only triggered when a complete application is received, as defined in 12 CFR 1026.19(e).
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A borrower submits a complete mortgage application on Monday. Due to a federal holiday on Tuesday, when must the lender provide the Loan Estimate?
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