Q: What are the general requirements for the Loan Estimate disclosure?
A: For closed-end credit transactions secured by real property or a cooperative unit (other than reverse mortgages), the creditor is required to provide the consumer with good-faith estimates of credit costs and transaction terms on a form called the Loan Estimate. This form integrates and replaces the GFE and the initial TIL for these transactions. The creditor is generally required to provide the Loan Estimate to the consumer within three business days of the receipt of the consumer’s loan application. (§ 1026.19(e)(1)). See section 6.1 (in the Bureau's TRID compliance guide) on the timing requirements of the Loan Estimate.
Loan Estimate must contain a good faith estimate of credit costs and transaction terms. If any information necessary for an accurate disclosure is unknown, the creditor must make the disclosure based on the best information reasonably available at the time the disclosure is provided to the consumer, and use due diligence in obtaining the information. (§ 1026.19(e)(1)(i); Comment 19(e)(1)(i)-1)
In certain situations, mortgage brokers may provide a Loan Estimate. As discussed in more detail in section 6.3 below, if a mortgage broker receives a consumer’s application, either the creditor or the mortgage broker may provide the Loan Estimate. (§ 1026.19(e)(1)(ii))