When are RESPA early disclosures required to be provided?

RESPA early disclosures are required to be provided within three business days of receiving a loan application. This requirement is intended to ensure that borrowers receive important information about the costs and terms of their mortgage loan as early as possible in the process. The early disclosures typically include the Loan Estimate, which outlines the estimated loan terms, projected payments, and closing costs. This timing enables borrowers to make informed decisions and helps them understand their financial obligations upfront.

Providing these disclosures promptly facilitates consumer protection by promoting transparency and allowing borrowers to shop around for the best loan options before committing to a mortgage. It also ensures compliance with RESPA regulations, which aim to prevent abusive practices and increase accountability in the lending process.