The Real Estate Settlement Procedures Act requires that the borrower sign the Loan Estimate at which point after the initial application?

The Real Estate Settlement Procedures Act (RESPA) mandates that borrowers receive a Loan Estimate, which outlines the key terms of a mortgage and provides an estimate of the closing costs, after they submit a loan application. However, this does not require the borrower to "sign" the Loan Estimate, as it is intended to be informational and given to the borrower to review, rather than to be signed as part of the formal application process.

Under RESPA, lenders must provide the Loan Estimate within three business days of receiving a borrower's application. This is a crucial consumer protection measure ensuring that borrowers understand the costs and terms associated with their loan well in advance of closing.

Therefore, the requirement does not encompass a signing of the Loan Estimate as a mandatory act. Instead, it focuses on the timing of providing the document to the borrower for their understanding and decision-making process. Hence, stating that the borrower “never” has to sign it aligns with RESPA regulations.