Finance
What is the purpose of the Good Faith Estimate (now Loan Estimate) under RESPA?
ATo guarantee the final loan terms
BTo provide borrowers with estimated closing costs and loan terms✓ Correct
CTo approve the borrower for financing
DTo disclose the property's appraised value
Explanation
Under RESPA, lenders must provide a Loan Estimate (formerly Good Faith Estimate) within 3 business days of a loan application. It discloses estimated loan terms, monthly payments, and closing costs to help borrowers compare lenders.
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