Michigan Real Estate Exam Practice Question
The buyer completes a mortgage loan application. The TILA-RESPA Integrated Disclosure (TRID) rule requires lenders to provide a Loan Estimate to the borrower:
Correct Answer: A
Rationale: The TILA-RESPA Integrated Disclosure (TRID) rule mandates that lenders provide a Loan Estimate to borrowers within 3 business days of receiving a mortgage loan application. This timeframe ensures that borrowers have timely access to essential information regarding loan terms and costs, promoting informed decision-making.
Option B (5 business days) is incorrect as it exceeds the required timeframe. Option C (7 business days) also fails to meet the TRID requirement, further delaying essential information. Option D is misleading; the Loan Estimate must be provided regardless of the appraisal status, ensuring borrowers are informed early in the process.
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