Which federal regulation mandates that the Loan Estimate be given to the borrower within three business days of the loan application?

The correct answer is based on the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) integrated disclosure (TRID) rule. This regulation is specifically designed to improve consumer understanding of mortgage loans and is a key component in ensuring that borrowers receive timely and clear information about the terms of their loans.

Under TRID, lenders are required to provide the Loan Estimate to consumers within three business days of receiving a loan application. This requirement helps borrowers compare different loan offers and understand their potential costs early in the process, empowering them to make informed financial decisions. TRID streamlines the disclosing process by combining disclosures that were previously separate, hence promoting transparency and consistency in how loan terms and associated costs are presented.

The other options pertain to different aspects of consumer protection in lending but do not specifically govern the requirement for the Loan Estimate. For instance, HMDA primarily focuses on data collection and reporting regarding mortgage loans to ensure fair lending practices, TILA encompasses a broader range of disclosure requirements beyond just the Loan Estimate, and ECOA addresses non-discrimination in lending but does not deal with the timing of the Loan Estimate.