An application arrives by email at 4:50pm on Thursday 11 June. The lender is open Monday to Friday and consummation is scheduled for 3 July. Assuming all six application items were received and no holiday intervenes, by when must the lender deliver or mail the initial Loan Estimate?
Correct Answer
B) The estimate is due by Tuesday 16 June, 3 business days after receipt
B. Deliver or mail the initial Loan Estimate by Tuesday, June 16. The application is received Thursday. With the supplied Monday–Friday business calendar, Friday is day one, Monday day two and Tuesday day three. The initial delivery-or-mailing deadline runs from application receipt, not backward from the scheduled closing date. Scope and exceptions: For this deadline, a business day means offices are open for substantially all business functions. The separate seven-business-day waiting requirement uses a different definition. Receiving an application electronically does not itself establish consent for electronic disclosures. Source: Section 1026.19(e)(1)(iii) and comments 1–2; comment 19(e)(1)(iv)-2 — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
B. Deliver or mail the initial Loan Estimate by Tuesday, June 16. The application is received Thursday. With the supplied Monday–Friday business calendar, Friday is day one, Monday day two and Tuesday day three. The initial delivery-or-mailing deadline runs from application receipt, not backward from the scheduled closing date. Scope and exceptions: For this deadline, a business day means offices are open for substantially all business functions. The separate seven-business-day waiting requirement uses a different definition. Receiving an application electronically does not itself establish consent for electronic disclosures.
Why the Other Options Are Wrong
Option A: The estimate is due by Monday 22 June, 7 business days after receipt
It confuses the separate pre-consummation waiting period with the application-triggered deadline.
Option C: The estimate is due by Monday 29 June, 3 business days before closing
It uses the wrong timing trigger.
Option D: The estimate is due by Friday 12 June, the next business day after it
Friday is permissible earlier delivery, but not the latest required day.
Exam Tip
Identify the deadline and its business-day definition before counting.
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