Which of the following statements about loan estimates is true?

The statement that loan estimates must be provided within 5 days of loan application is accurate. The Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) under the integrated disclosures mandate that lenders deliver a loan estimate to borrowers promptly, ensuring that consumers have the necessary information about the costs and terms of their loan options. This requirement helps consumers make informed decisions and understand the financial implications of their loan agreements.

Providing a loan estimate within five days of the application is crucial because it establishes a clear timeline for both the lender and the borrower. This timeframe ensures that the borrower can adequately assess the offer and compare it with other loan options before proceeding, promoting transparency and informed decision-making in the mortgage process.

In contrast, other options either misrepresent the rules governing loan estimates or suggest flexibility that does not exist within the regulations. For instance, loan estimates cannot change arbitrarily without notice, they are not optional for certain loans, and they must itemize fees to provide a detailed understanding of the costs involved in securing the loan.