Final answer:
A revised Loan Estimate can typically be delivered to the borrower four business days before consummation, which is not an option provided. The closest correct answer is 3 business days. Option 1
Step-by-step explanation:
Under the Truth in Lending Act (TILA), as implemented by Regulation Z, a revised Loan Estimate can generally be provided to the borrower no later than four business days prior to consummation. However, this wasn't one of the options provided, which might be due to a typo or an outdated question.
The closest option to the actual regulation would be 3 business days, as it is the option that is not beyond the permitted time frame established by TILA.
When a lender is faced with imperfect information about a potential borrower's ability to repay a loan, there are several methods a borrower might use to reassure the lender:
Offering collateral, which provides the lender with a form of security.
Providing a detailed and realistic business plan if the loan is for business purposes, showing the lender how the funds will be used and how the business will generate income to repay the loan.
Showing proof of consistent income or employment history, which suggests financial stability.
Holding a good credit score and providing credit reports to denote past financial responsibility and low risk of default.
Having a co-signer or guarantor to back the loan, thereby providing an additional layer of security for the lender. Option 1