A borrower who submitted an application 4 days ago calls asking why they haven't received a Loan Estimate yet. The MLO realizes they forgot to send it. What should the MLO do immediately?
Correct Answer
A) Send the Loan Estimate immediately and apologize for the delay
Under TRID (12 CFR 1026.19(e)), the Loan Estimate must be delivered within 3 business days of receiving an application. The MLO has violated this requirement and should immediately send the Loan Estimate to minimize further violation. While compliance notification may be appropriate, the immediate priority is to provide the required disclosure to the borrower. The violation should be documented and reported per company procedures.
Why This Is the Correct Answer
Under TRID (12 CFR 1026.19(e)), the Loan Estimate must be delivered within 3 business days of receiving an application. The MLO has violated this requirement and should immediately send the Loan Estimate to minimize further violation. While compliance notification may be appropriate, the immediate priority is to provide the required disclosure to the borrower. The violation should be documented and reported per company procedures.
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