Which of the following is true regarding the timing of the Loan Estimate?

The correct response highlights an important regulatory requirement in the mortgage loan process. The Loan Estimate must be delivered to the borrower no later than three business days after they submit a loan application. This timeline is mandated by the TILA-RESPA Integrated Disclosure (TRID) rule, which aims to provide borrowers with clear and concise information about the terms and costs of their loan as early as possible.

This requirement is pivotal because it ensures that borrowers have sufficient time to consider their loan options and understand the associated costs before they proceed with closing. By providing this standardized timeline, it helps protect consumers and promotes transparency in the mortgage lending process, allowing borrowers to make informed decisions.

Understanding this critical timeline is essential for loan officers, as it impacts the overall flow of the lending process and ensures compliance with federal regulations. The other options imply flexibility or misinformation regarding the delivery of the Loan Estimate, which underscores the importance of adhering to this three-business-day rule.