Finance
In Rhode Island, what is the purpose of a Loan Estimate (formerly good faith estimate) under TRID?
ATo provide the buyer with an appraisal of the property
BTo give the borrower an estimate of loan terms and closing costs within three days of application✓ Correct
CTo confirm the final closing costs at settlement
DTo disclose the seller's net proceeds
Explanation
Under TRID (TILA-RESPA Integrated Disclosure) rules, lenders must provide a Loan Estimate to borrowers within three business days of receiving a mortgage application. It discloses estimated loan terms, projected payments, and closing costs.
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