Origination ActivitiesQuestion 200 of 400
The primary purpose of the Loan Estimate is to:
a.Serve as a binding loan contract
b.Guarantee the interest rate for 30 days
c.Help the consumer understand the key loan terms and costs and shop among lenders
d.Replace the promissory note
Explanation
The Loan Estimate is designed to give consumers clear, comparable information about the key terms and costs of a mortgage so they can shop among lenders. It is not a contract, a rate guarantee, or a substitute for the note.
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Related questions on this topic
- A new three-business-day waiting period after the Closing Disclosure is required in all of the following EXCEPT:
- If the Closing Disclosure is placed in the mail, when is the consumer presumed to have received it (absent evidence of earlier receipt)?
- Which of the following is disclosed on the Loan Estimate?
- Under TRID, who is responsible for ensuring the Loan Estimate is provided to the consumer?
- A mortgage broker receives a consumer's application. Which statement is correct about the Loan Estimate?
- Before intent to proceed, the fee a creditor charges to obtain the credit report must be:
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