When must the Loan Estimate be provided under TRID?

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Multiple Choice

When must the Loan Estimate be provided under TRID?

Under TRID, the Loan Estimate must be provided within three business days after receiving a complete application. An application is considered received when the lender has enough information to proceed, typically including the consumer’s name, income, Social Security number, property address, estimated property value, and loan amount. Once those items are provided, the three-business-day clock starts, and the Loan Estimate must be delivered in writing by that deadline. Business days count Monday through Friday, excluding holidays. This isn’t five business days after application, and it isn’t at closing or after underwriting approval. Those disclosures occur later in the process (with closing involving the Closing Disclosure and underwriting decisions occurring prior to approval). The emphasis of the rule is to give borrowers early, clear cost information so they can compare loan terms.

Under TRID, the Loan Estimate must be provided within three business days after receiving a complete application. An application is considered received when the lender has enough information to proceed, typically including the consumer’s name, income, Social Security number, property address, estimated property value, and loan amount. Once those items are provided, the three-business-day clock starts, and the Loan Estimate must be delivered in writing by that deadline. Business days count Monday through Friday, excluding holidays.

This isn’t five business days after application, and it isn’t at closing or after underwriting approval. Those disclosures occur later in the process (with closing involving the Closing Disclosure and underwriting decisions occurring prior to approval). The emphasis of the rule is to give borrowers early, clear cost information so they can compare loan terms.

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