Loan Officer Practice Exam

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Prepare for the Loan Officer Exam. Study with quizzes and multiple choice questions, each with hints and detailed explanations. Start your journey today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

According to Regulation B, how many business days prior to consummation must an appraisal copy be provided for closed-end credit?

3 days
5 days
7 days
10 days

The correct answer is: 3 days

Regulation B, which implements the Equal Credit Opportunity Act, requires that a copy of the appraisal report must be provided to the applicant at least three business days prior to the consummation of the loan. This rule is in place to ensure that borrowers have sufficient time to review the appraisal findings before finalizing the mortgage agreement. The requirement for a three-day timeline allows borrowers to understand the valuation of the property, addressing any concerns they may have regarding the property's worth in relation to the loan amount. The other options reflect longer timelines that do not align with the specific provisions set forth in Regulation B. Understanding this timeframe is crucial for loan officers to comply with lending regulations and to support transparency in the lending process, fostering informed decision-making for applicants.