Final answer:
The federal law that requires the Loan Estimate to be provided to the borrower within three business days of the time the loan application is taken is the Truth in Lending Act (TILA). TILA is a federal law that aims to protect consumers by requiring lenders to provide clear and accurate information about the terms and costs of credit.
Step-by-step explanation:
The federal law that requires the Loan Estimate to be provided to the borrower within three business days of the time the loan application is taken is the Truth in Lending Act (TILA) .
TILA is a federal law that aims to protect consumers by requiring lenders to provide clear and accurate information about the terms and costs of credit.
Under TILA, lenders must provide the Loan Estimate to borrowers within three business days of receiving their loan application.
The Loan Estimate includes details such as the loan amount, interest rate, estimated monthly payments, and closing costs. This allows borrowers to compare loan offers and make informed decisions.
By providing borrowers with the Loan Estimate, TILA helps promote transparency and fairness in the lending process, ensuring that borrowers have the necessary information to understand the terms and costs of their loan.