What disclosure is specifically required within 3 business days of a complete application for an adjustable rate mortgage loan?

Asked by: Kendra Cummerata  |  Last update: July 24, 2025
Score: 4.3/5 (50 votes)

Disclosure of good faith estimate of costs must be made no later than 3 days after application. This means that a creditor must deliver or mail the early disclosures for all mortgage loans subject to RESPA no later than 3 business days (general definition) after the creditor receives a consumer's application.

What disclosure is specifically required within three business days of a complete application for an adjustable rate mortgage loan?

Loan Estimate (LE): This must be provided within three business days of receiving the loan application. LEs specifically outline the estimated interest rate, monthly payment, and total closing costs for the product.

Which of the following disclosures must be given within 3 business days of receiving an application?

Servicing Disclosure Statement

RESPA requires the lender or mortgage broker to tell you in writing, when you apply for a loan or within the next three business days, whether it expects that someone else will be servicing your loan (collecting your payments).

What disclosures must be provided within 3 business days of receiving a mortgage loan application?

The Disclosure time period begins on the business day following receipt of the consumer's application. Loan Estimate -Initial disclosure (Delivery): The lender must provide the initial Loan Estimate no later than 3 business days (using the general definition of business day) after application is received.

What disclosures are specifically required within 3 days of application?

The Loan Estimate must be provided to consumers no later than three business days after they submit a loan application. The second form (Closing Disclosure) is designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction.

TRID Disclosures Loan Estimate (Module 2) | NMLS SAFE MLO Exam Study Series and Test Prep

28 related questions found

What is the 3 day disclosure rule for mortgage application?

Your lender is required to send you a Closing Disclosure that you must receive at least three business days before your closing. It's important that you carefully review the Closing Disclosure to make sure that the terms of your loan are what you are expecting.

What is the 3 day initial disclosure rule?

The three-day period is measured by days, not hours. Thus, disclosures must be delivered three days before closing, and not 72 hours prior to closing. Note: If a federal holiday falls in the three-day period, add a day for disclosure delivery.

What must the lender provide to the buyer within three business days of the loan application?

A Loan Estimate is a three-page form that you receive after applying for a mortgage. The Loan Estimate tells you important details about the loan you have requested. The lender must provide you a Loan Estimate within three business days of receiving your application.

What is the 3 day rule for RESPA?

According to the Consumer Financial Protection Bureau's final rule, the creditor must deliver the Closing Disclosure to the consumer at least three business days prior to the date of consummation of the transaction.

Which document must be provided to a borrower within three business days of completing a loan application?

Documents required by federal law

These documents include: The Loan Estimate is a form that lays out important information about the loan you applied for. The lender sends you a Loan Estimate within three business days of receiving your application.

What are the disclosure requirements?

'Disclosure Requirement' refers to the mandatory rules and regulations that dictate the full reporting of financial transactions, including contributions and expenditures, related to political campaigns or organizations.

Which disclosure that is required to be sent three days after application indicates to the borrower whether or not the servicing of their loan may be sold or transferred?

The Home Loan Toolkit is another disclosure required by TRID. The lender must provide this document to the borrower within three (3) business days of application for all purchases.

What are the specific business days for Trid?

If we say, "Precise business day," it means you count all days except for Sundays and federal holidays. All days except for Sundays and federal holidays, regardless of whether you're open, count them. The general business day works like this. It's only days that you're open for substantially all business functions.

Which of the following disclosures must be given within three business days of receiving an application?

The initial Truth in Lending Statement must be delivered to the consumer within 3 business days of the receipt of the loan application by the lender.

What is an example of the closing disclosure 3 day rule?

This three business-day rule may include Saturdays, but it does not count Sundays or holidays. For instance, if you want to sign on a Friday and a holiday falls on a Thursday, you must receive your closing disclosure on Monday. Because of this, the three-day period is NOT measured by hours.

Which disclosures must be given within 3 business days of receiving a mortgage application?

The first new form, the Loan Estimate, replaced the RESPA Good Faith Estimate and the early Truth in Lending disclosure. The rule requires creditors to deliver or place in the mail the Loan Estimate no later than three business days after the consumer submits a loan application.

Does RESPA require the lender to disclose within 3 days of loan application?

RESPA requires that a "Servicing Disclosure Statement" be given at the time an application for a mortgage servicing loan is submitted or within 3 business days. It must indicate whether the servicing of the loan may be assigned, sold or transferred to any other person at any time while the loan is outstanding.

What is the CFPB 3 day appraisal rule?

Section 1002.14(a)(1) requires that the creditor “provide” copies of appraisals and other written valuations to the applicant “promptly upon completion,” or no later than three business days before consummation (for closed-end credit) or account opening (for open-end credit), whichever is earlier.

What is the 3-day rule for loan disclosure?

Your lender is required by law to give you the standardized Closing Disclosure at least 3 business days before closing. This is what is known as the Closing Disclosure 3-day rule. This requirement is thanks to the TILA-RESPA Integrated Disclosures guidelines, which went into effect on October 3, 2015.

What must be given to borrowers within three days after the loan application quizlet?

A disclosure statement given to borrowers that discloses whether the lender intends to service the loan or transfer it to another lender or servicing company. Must be given at the time of the loan application or within 3 business days.

What does a broker need to deposit within three business days?

A broker typically has three business days to deposit a client's earnest money into the broker's trust account. For example, if the client provides the earnest money on a Monday, the broker would need to deposit it by Thursday.

What is the clear to close 3 day rule?

The 3-day waiting period begins with the delivery of the closing disclosure document to the borrower. This critical time frame allows borrowers a dedicated window to review the terms, costs, and conditions of their mortgage before committing to the closing.

What is the initial disclosure requirement?

Initial disclosures in California state court

Effective 1 January 2024 to 1 January 2027, any party to a civil action can demand that all parties provide verified initial disclosures within 60 days. Previously, initial disclosures could only be required under section 2016.090 with a stipulation of all parties.

What is the 3 day rule in real estate?

The California Purchase Contract is chock-full of deadlines: three days to place a deposit into escrow; 17 days to perform investigations; scheduling utilities, organizing closing, and many other important details.