Which statement is true about the three business days disclosure?

• A. It must be provided within three business days after application (correct)
• B. It must be provided before application
• C. It is required only for refinances
• D. It is optional

Answer: (A)

The main idea here is understanding when the initial disclosure must be given under TRID rules for mortgage loans. After a consumer submits a complete application, the lender is required to provide the Loan Estimate within three business days. This timing is designed to give borrowers a clear, early snapshot of loan terms and costs so they can compare options before moving forward. The clock starts only after the lender has a complete application, which typically includes the borrower’s name, income, Social Security number, property address, estimated value, and loan amount. Because of that, disclosing before an actual application is received isn’t correct, and the rule applies to more than just refinances (it covers most purchase loans as well). It is not optional; lenders must meet this three-day disclosure requirement. For example, if a borrower applies on Monday and the application is complete, the Loan Estimate must be delivered by Thursday, assuming no holidays.