Question

What are the RESPA initial disclosures and their due date?

1) Within three business days of receiving an application
2) Within five business days of receiving an application
3) Within ten business days of receiving an application
4) Within fifteen business days of receiving an application

Answer 1

RESPA initial disclosures include the Loan Estimate and Homeownership Counseling Disclosure. The Loan Estimate must be provided within three business days of receiving an application, and the Homeownership Counseling Disclosure within ten business days.

Step-by-step explanation:

The RESPA initial disclosures are the documents that lenders are required to provide to borrowers under the Real Estate Settlement Procedures Act (RESPA). These disclosures include important information about the terms and costs of the loan.

1. Within three business days of receiving an application: Lenders must provide the Loan Estimate, which outlines the estimated costs of the loan, including the interest rate, closing costs, and monthly payment.
2. Within ten business days of receiving an application: Lenders must provide the Homeownership Counseling Disclosure, which informs borrowers about their right to receive homeownership counseling.

So, the correct answer is option 1) Within three business days of receiving an application for the Loan Estimate, and option 3) Within ten business days of receiving an application for the Homeownership Counseling Disclosure.