For RESPA-purchase and refi transactions, within how many business days must the Loan Estimate be provided to the borrower?

For RESPA-purchase and refi transactions, within how many business days must the Loan Estimate be provided to the borrower?

• A. 3 business days after application
• B. 3 business days after closing
• C. 7 business days after application
• D. At closing

Answer: (A)

The key rule being tested is the timing of the initial loan disclosure under TRID. For purchase and refinancing transactions, the lender must provide the borrower a Loan Estimate within three business days after receiving a complete loan application. A complete application is when the borrower supplies the six items: name, monthly income, social security number, property address, estimated value of the property, and the loan amount sought. The countdown starts once those details are in; if the application isn’t yet complete, the three-day clock doesn’t begin. This early disclosure lets borrowers compare costs and terms before deciding whether to proceed, and it is not delivered at closing. The other timeframes—three days after closing, seven days after application, or exactly at closing—do not meet TRID requirements.

The key rule being tested is the timing of the initial loan disclosure under TRID. For purchase and refinancing transactions, the lender must provide the borrower a Loan Estimate within three business days after receiving a complete loan application. A complete application is when the borrower supplies the six items: name, monthly income, social security number, property address, estimated value of the property, and the loan amount sought. The countdown starts once those details are in; if the application isn’t yet complete, the three-day clock doesn’t begin. This early disclosure lets borrowers compare costs and terms before deciding whether to proceed, and it is not delivered at closing. The other timeframes—three days after closing, seven days after application, or exactly at closing—do not meet TRID requirements.