If a mortgage broker originates a loan and receives the application, who is responsible for the accuracy of the Loan Estimate?

The lender is ultimately responsible for the accuracy of the Loan Estimate, even though the mortgage broker plays a crucial role in the origination process. When a loan application is submitted, the lender must ensure that all terms, fees, and conditions are accurately reflected in the Loan Estimate as mandated by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).

The Loan Estimate is a standardized form that allows consumers to compare different mortgage offers, and it is required to be delivered to borrowers within three business days of receiving the loan application. While the mortgage broker may aid in preparing and submitting the Loan Estimate, the lender is accountable for its final accuracy and compliance with the regulations. This accountability means that if there are discrepancies or inaccuracies in the Loan Estimate, the lender is the party that faces regulatory scrutiny.

Thus, while both the mortgage broker and the lender may work together closely, it is the lender who has the legal obligation to ensure that the information provided in the Loan Estimate is correct and complies with applicable laws.