National and UST Mortgage 1 Practice Exam

A borrower must receive disclosure advising them of their right to a copy of the appraisal within three business days of the loan application. This requirement is part of the regulations established by the Dodd-Frank Act, which aims to provide greater transparency in the mortgage lending process.

Providing this disclosure within three business days ensures that borrowers are informed of their rights early in the loan process, allowing them to understand and utilize their right to review the appraisal. This transparency helps borrowers make informed decisions about their mortgage and enhances their understanding of how the appraisal may impact their loan terms and property valuation.

The timing of this disclosure is critical as it aligns with the borrower's right to access information regarding the value placed on the property they intend to finance, promoting a fair lending environment.