Loan Documents

Question 1

Loan Estimate

Answer 1

1. Must be given 3 days after loan application.

2. Part of regulation X and could also be part of regulation Z

Question 2

What 6 things need to be collected to trigger the 3 business days for the Loan Estimate to be mailed?

What kind of violation is this if this is not sent?

Answer 2

P - property address
E - estimated value
N - name
C - credit (ssn)
I - income
L - loan amount

It is a RESPA violation if after these things are received the loan estimate is not sent out in 3 days

Question 3

For the Loan Estimate, what is considered a business day?

Answer 3

Equivalent to a day that the entity is largely open for business. May or may not include Saturday.

Question 4

For the Closing Estimate what is considered a business day

Answer 4

All days except Sunday and holidays.

Question 5

Which fees on the Loan Estimate have zero tolerance?

Answer 5

1. Fees paid to creditor, broker, or affiliate of either
2. Fees paid to unaffiliated 3rd parties if consumer prohibited from shopping
3. Transfer taxes

Question 6

What fees on the Loan Estimate are limited to a 10% cumulative increase?

Answer 6

1. Recording fees

2. Third party services that the consumer can shop for but selects the provider given by the lender.