Loan Officer Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

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.

Consummation may occur on or after how many business days after the delivery or mailing of the initial Loan Estimate?

seven
three
four
ten

The correct answer is: seven

The correct response, which indicates that consummation may occur on or after seven business days following the delivery or mailing of the initial Loan Estimate, is in alignment with the regulations established by the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure rule. This seven-business-day waiting period is designed to ensure borrowers have adequate time to review the terms and conditions outlined in their Loan Estimate. The rationale behind this requirement is to promote informed decision-making and prevent rushed decisions regarding mortgage loans. It allows borrowers to fully understand important aspects such as interest rates, closing costs, and other fees before moving forward with the loan process. In addition to providing borrowers with essential information, this requirement is also intended to facilitate comparison shopping for loans, ensuring transparency and promoting fair lending practices. Consummation refers to the moment when the borrower becomes legally obligated on the loan and can only happen after this mandated waiting period, thereby safeguarding the borrower’s interests.