When must a lender provide the initial HELOC disclosure statement to an applicant?
Correct Answer
A) Within 3 business days of receiving the application
Under Regulation Z Section 226.5b, lenders must provide HELOC disclosures within 3 business days after receiving a completed application. This early disclosure helps borrowers understand the terms before proceeding with the application process.
Why This Is the Correct Answer
Under Regulation Z Section 226.5b, lenders must provide HELOC disclosures within 3 business days after receiving a completed application. This early disclosure helps borrowers understand the terms before proceeding with the application process.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
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A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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