Which disclosure required by TRID summarizes potential closing costs for the borrower?

The Loan Estimate (LE) is a critical disclosure mandated by the TILA-RESPA Integrated Disclosure (TRID) rule. This document is designed to give borrowers a clear, concise summary of their potential closing costs, allowing them to understand the financial implications of their mortgage before they finalize the loan. The Loan Estimate must be provided within three business days of receiving a loan application and includes details on the estimated monthly payment, the interest rate, the projected taxes and insurance, and the overall costs associated with obtaining the loan.

This form serves not only to comply with federal regulations but also to promote transparency and informed decision-making among borrowers, ensuring they are aware of the total costs involved in securing a mortgage. Other options do not fulfill the requirement to summarize potential closing costs in the same comprehensive manner that the Loan Estimate does.