When is a mortgage loan originator not required to provide a Loan Estimate?

A mortgage loan originator is not required to provide a Loan Estimate if the borrower withdraws the application before the end of the three-business-day period. This requirement is rooted in the regulations of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), which stipulate that a Loan Estimate must be provided when a loan application has been made and is considered "complete."

If the borrower decides to withdraw their application before this period concludes, the lender or mortgage loan originator does not have to issue a Loan Estimate, as the process is not sufficiently advanced to warrant such documentation. The Loan Estimate becomes necessary only when a full application is received and evaluated by the lender.

The other situations mentioned would not exempt the mortgage loan originator from providing a Loan Estimate. For instance, if the borrower cancels the loan after receiving a Loan Estimate, the document would typically have already been issued. If the borrower fails to provide the necessary documentation but has submitted a complete loan application, the Loan Estimate still needs to be given. Lastly, the low loan amount threshold, as indicated in one of the other options, does not determine the requirement for providing a Loan Estimate since the thresholds for Loan Estimates apply differently and are not based solely on