Which regulation requires lenders to provide a Loan Estimate to mortgage applicants?

The regulation that mandates lenders to provide a Loan Estimate to mortgage applicants is the TILA-RESPA Integrated Disclosure (TRID) rule. This rule was implemented to simplify and enhance the mortgage disclosure process for consumers. It combines the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) requirements, streamlining the information that borrowers receive when applying for a mortgage.

The Loan Estimate form must be provided to borrowers within three business days of their loan application. This form is crucial as it outlines key loan details, including loan terms, estimated monthly payments, and closing costs, helping borrowers make informed decisions about their mortgage options. By requiring this disclosure, TRID aims to enhance transparency and ensure that consumers are well-informed about the costs and terms associated with their mortgages.

The other regulations mentioned have different purposes. The Fair Lending Act is focused on preventing discrimination in lending practices, Regulation P pertains to privacy regulations regarding personal financial information, and the Equal Credit Opportunity Act aims to ensure that all consumers have equal access to credit without discrimination. None of these regulations specifically address the requirement for lenders to provide a Loan Estimate.