A revised Loan Estimate must be delivered to the applicant no later than how many days prior to consummation using the mailbox rule?

The correct answer is that a revised Loan Estimate must be delivered to the applicant no later than 4 days prior to consummation when applying the mailbox rule. This is based on regulations set forth in the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).

The mailbox rule specifies that a document is considered "received" at the time it is placed in the mail, rather than when the recipient actually opens or reads it. This means that for a revised Loan Estimate to be compliant, lenders must ensure that it is sent out in sufficient time to allow the borrower to receive it before the closing process begins.

By requiring that the revised Loan Estimate be delivered at least 4 days in advance, this regulation allows the borrower adequate time to review the updated terms and allows for transparency in the loan process. This ensures that borrowers are fully informed of any changes to their loan costs or terms before they proceed to consummation.

Understanding this timeline helps both loan officers and borrowers navigate the loan process more effectively and maintain compliance with federal regulations.