Which document must an MLO provide to a borrower during the application process?

The correct choice is the Loan Estimate, which is a critical document that an MLO must provide to a borrower during the application process. The Loan Estimate serves several important functions: it lays out the key terms of the loan, including interest rates, monthly payments, and estimated closing costs in a clear and concise format. It allows borrowers to understand the financial implications of the loan they are considering, making it easier for them to compare different mortgage offers from various lenders.

Under the guidelines set by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), lenders are required to provide this document within three business days of receiving a loan application. This ensures that borrowers have the necessary information to make informed decisions about their financing options.

The other documents mentioned serve different purposes. While the Credit Report provides insight into a borrower’s creditworthiness, it is not a document that must be handed over during the application process itself. A Disclosure Statement, though important, often refers to specific disclosures rather than a standardized form. Lastly, the Loan Application Form is the initial document that outlines the borrower’s financial information but does not provide the crucial estimates and terms that the Loan Estimate does. Thus, the Loan Estimate is the key document that ensures transparency