New Jersey Real Estate License Exam Practice Question
Federal rules require a Closing Disclosure document provided by the lender. The broker should counsel the borrower to review this document and compare it with the Loan Estimate document. The Closing Disclosure should be received by the borrower:
Correct Answer: B
Rationale: The Closing Disclosure must be provided to the borrower at least 3 days prior to loan consummation to ensure they have adequate time to review the terms and costs associated with their mortgage. This requirement promotes transparency and informed decision-making.
Option A is incorrect because receiving the document at closing does not allow for sufficient review time. Option C is wrong, as a 30-day delay would not fulfill the regulatory requirement for timely disclosure. Option D is also inaccurate since the document must be delivered much sooner than 10 business days after application, emphasizing the importance of early communication in the lending process.
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