What is the required action if a borrower does not receive a Loan Estimate?

When a borrower does not receive a Loan Estimate, the lender is required to provide it as soon as possible and prior to loan closing. This requirement is in place to ensure that borrowers have clear and accessible information regarding the terms, projected payments, and costs of the mortgage. The Loan Estimate is a critical document that helps borrowers understand the financial implications of their loan and enables them to make informed decisions.

Providing the Loan Estimate promptly is vital for compliance with federal regulations, particularly the Truth in Lending Act and the Real Estate Settlement Procedures Act. Failing to provide the Loan Estimate can lead to significant disclosure violations and potential legal issues for the lender. Therefore, the lender must act quickly to rectify the situation and ensure that the borrower receives this essential information before the loan proceeds to closing.