How many business days after a borrower submits a loan application must the lender make the required disclosures?

The correct answer is three days because under the Real Estate Settlement Procedures Act (RESPA), lenders are required to provide borrowers with specific disclosures within three business days of receiving a loan application. These disclosures include the Loan Estimate, which outlines the estimated costs and terms of the mortgage.

The three-day window ensures that borrowers have sufficient information to understand the terms of the loan, allowing them to compare offers and make informed decisions. This is a crucial part of consumer protection in the mortgage lending process, highlighting the importance of transparency and communication from lenders.

In contrast, shorter or longer timelines such as two days, five days, or ten days do not align with the regulatory requirements established under RESPA, which is why they are incorrect choices. The three-day timeline strikes a balance between promptness in communication and the necessity for lenders to prepare detailed disclosures accurately.