A borrower submits a complete mortgage application on Monday. Due to a federal holiday on Tuesday, when must the lender provide the Loan Estimate?
Correct Answer
B) By Thursday
The 3-business-day requirement excludes federal holidays. With Monday as day 1, Tuesday (holiday) doesn't count, so Wednesday is day 2, and Thursday is day 3, making Thursday the deadline under 12 CFR 1026.19(e)(1)(iii).
Why This Is the Correct Answer
The 3-business-day requirement excludes federal holidays. With Monday as day 1, Tuesday (holiday) doesn't count, so Wednesday is day 2, and Thursday is day 3, making Thursday the deadline under 12 CFR 1026.19(e)(1)(iii).
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An MLO's employment contract includes a provision that their commission rate will decrease by 0.1% for every loan that is rejected by underwriting in a given month. This compensation structure:
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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?