Mortgage Loan Originator (MLO) Licensing Practice Test

Question: 1 / 605

What constitutes a Business Day in relation to loan disclosures?

Any day including weekends

Any day the creditor is open to the public

A Business Day in the context of loan disclosures refers to any day that the creditor is open to the public for conducting business. This definition encompasses not just weekdays, but specifically includes any day where the institution is available for business operations.

For example, if a lender operates on a Saturday, that Saturday counts as a Business Day for purposes of delivering disclosures. This concept is essential because federal regulations require timely disclosures to borrowers, and understanding which days are considered Business Days ensures that both borrowers and lenders are on the same page regarding timelines and deadlines related to the loan process.

In contrast, simply considering only weekdays or excluding federal holidays would not align with the regulatory requirements that aim to provide a clear and consistent standard for when disclosures must be provided to applicants.

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Only weekdays

Only federal holidays

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