Question 5
Domain 1: Federal Mortgage-Related LawsUnder TILA-RESPA Integrated Disclosure (TRID) rules, when must the Loan Estimate be delivered or placed in the mail to the borrower?
Correct answer: B
Explanation
TRID requires the creditor to deliver or place the Loan Estimate in the mail "not later than 3 business days after receiving the consumer's application." This timing gives the borrower early disclosure of key loan terms and estimated costs before they proceed.
Why each option is right or wrong
A. Within 24 hours of application
B. No later than 3 business days after receiving the application
12 C.F.R. § 1026.19(e)(1)(i) requires the creditor to deliver or place the Loan Estimate in the mail not later than 3 business days after receiving the consumer’s application. Under TRID, an application is received once the creditor has the six required pieces of information, so the 3-business-day clock starts at that point and not when underwriting is completed.
C. Within 7 business days of application
D. At closing