Question

What are RESPA's 3 pre-settlement disclosures that must be sent to the borrower within 3 business days of receipt of the signed application?

A. Loan Estimate
B. Closing Disclosure
C. Good Faith Estimate
D. Mortgage Note

Answer 1

RESPA requires three pre-settlement disclosures to be sent to the borrower within 3 business days of receipt of the signed application: Loan Estimate, Closing Disclosure, and Mortgage Note.

Step-by-step explanation:

The three pre-settlement disclosures that must be sent to the borrower within 3 business days of receipt of the signed application, as required by RESPA (Real Estate Settlement Procedures Act), are:

1. Loan Estimate: This document provides the borrower with an estimate of the costs and terms of the loan, including an estimate of the closing costs.
2. Closing Disclosure: This document provides the borrower with the final and detailed breakdown of all the costs and terms of the loan, including the closing costs.
3. Mortgage Note: This document outlines the borrower's promise to repay the loan and includes the terms of repayment, such as the interest rate, payment schedule, and penalties for late payments.