Loan Officer Practice Exam

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Prepare for the Loan Officer Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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Under the Loan Estimate requirement, how many days in advance must a borrower receive the Loan Estimate after applying for a mortgage?

3 days
5 days
7 days
10 days

The correct answer is: 3 days

The correct timeframe for when a borrower must receive a Loan Estimate after applying for a mortgage is three days. This requirement is outlined in the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) regulations, which mandate that lenders provide the Loan Estimate to borrowers within three business days following the submission of a mortgage application. This regulation is intended to ensure borrowers have sufficient time to review the terms and costs associated with the loan, promoting transparency in the lending process. Considering other options, five, seven, and ten days do not align with the regulatory standards established under RESPA and TILA, making them incorrect choices for the specific timeframe allocated for issuing the Loan Estimate. This time-sensitive requirement is crucial for borrowers in making informed decisions about their mortgage options.