When a loan estimate is revised, it must be delivered to the applicant no later than?

The requirement for delivering a revised loan estimate is set to ensure that applicants have sufficient time to review any changes that may impact their loan terms prior to consummation. By stipulating that the revised loan estimate must be provided at least four business days before consummation, it allows the borrower to consider the new information and make informed decisions regarding their mortgage.

This timeline plays a crucial role in the regulatory framework governing mortgage transactions, specifically under the TILA-RESPA Integrated Disclosure (TRID) rule. It provides a structured period for the borrower to reflect on the adjustments and reduces the likelihood of surprises at closing. This requirement is essential for ensuring transparency and protecting the interests of consumers in the borrowing process.

Other options do not align with regulatory requirements. For instance, delivering the revised loan estimate seven business days before consummation would not comply with the specific four-day rule, while the same-day delivery with the closing disclosure does not allow adequate time for review. Immediate delivery when revisions are made could lead to confusion or rushed decision-making, undermining consumer protection measures.