Q: Can a mortgage broker provide a Loan Estimate on the creditor’s behalf?
A: Yes. If a mortgage broker receives a consumer’s application, the mortgage broker may provide the Loan Estimate to the consumer on the creditor’s behalf. (§ 1026.19(e)(1)(ii))
The provision of a Loan Estimate by a mortgage broker satisfies the creditor’s obligation to provide a Loan Estimate. However, any such creditor is expected to maintain communication with mortgage brokers to ensure that the Loan Estimate and its delivery satisfy the requirements described in this Guide, and the creditor is legally responsible for any errors or defects. (§ 1026.19(e)(1)(ii); Comment 19(e)(1)(ii) -1 and -2)
If a mortgage broker provides the Loan Estimate to a consumer, the mortgage broker must comply with the three year record retention requirement discussed in section 2.3 above. (§ 1026.19(e)(1)(ii)(B); Comment 19(e)(1)(ii)-1)