Mortgage Loan Originator (MLO) Licensing Practice Test

A creditor must provide a revised Loan Estimate within three days after receiving new information that affects the terms or conditions of the loan. This requirement is part of the Truth in Lending Act (TILA) regulations under the Real Estate Settlement Procedures Act (RESPA) integrated disclosure rule, commonly known as TRID.

The importance of this timeline is to ensure transparency and maintain the borrower’s understanding of the loan terms as they evolve. When a creditor obtains information that leads to changes in the loan terms—such as a change in the borrower's creditworthiness or the type of loan being pursued—they are obligated to promptly disclose this to the borrower. This three-day period is designed to give borrowers an updated view of what they can expect and to facilitate informed decisions moving forward.

Stipulated timelines in the other options are either too short or too long according to the regulatory framework, making them unsuitable for this specific requirement.