Nationwide Mortgage Licensing System (NMLS) Practice Exam

Within how many days must the GFE/Loan Estimate be delivered after receiving the signed application?

1. 3 business days

2. 7 business days

3. 10 business days

4. 30 business days

The correct answer is: 3 business days

The correct timeframe for delivering the Good Faith Estimate (GFE) or Loan Estimate after receiving a signed application is three business days. This requirement is established under the federal regulations designed to ensure that consumers are provided with critical information related to their mortgage loan options in a timely manner. This rule is aimed at promoting transparency and helping borrowers make informed decisions about their mortgage financing. Within this three-business-day window, lenders are obligated to provide the Loan Estimate, which outlines the terms of the loan, estimated payments, and the closing costs associated with the mortgage. This delivery timeframe is crucial as it allows borrowers to begin comparing offers from different lenders and helps them to understand the costs involved before committing to a mortgage. Understanding this timeline is essential for compliance with the regulatory standards set by the Consumer Financial Protection Bureau (CFPB) and is a key aspect of ensuring that consumers are protected in the borrowing process. The other options, with longer timeframes, do not align with the regulatory requirements in place, emphasizing the importance of prompt communication in the loan application process.