West Virginia Mortgage Law Practice Test

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Prepare for the West Virginia Mortgage Law Exam with our comprehensive test. Study using various questions and insights to strengthen your understanding of mortgage regulations and laws in West Virginia. Gear up and ensure you pass your exam!

Practice this question and more.

Which federal law requires mortgage professionals to provide a Loan Estimate within three business days of receiving a loan application?

Fair Housing Act
Real Estate Settlement Procedures Act
Secure and Fair Enforcement for Mortgage Licensing Act
Truth in Lending Act

The correct answer is: Fair Housing Act

The requirement for mortgage professionals to provide a Loan Estimate within three business days of receiving a loan application is established by the Real Estate Settlement Procedures Act (RESPA). This federal law is designed to ensure that borrowers receive information about the costs and terms of their mortgage loans, helping them make informed decisions. The Loan Estimate includes important details such as estimated monthly payments, closing costs, and the overall cost of the loan, allowing borrowers to compare different mortgage offers effectively. Knowing these costs upfront is crucial in the home-buying process and ensures transparency in the lending process. While the other laws mentioned have significant roles in regulating various aspects of housing and mortgage lending, they do not impose the specific requirement for providing a Loan Estimate within the defined time frame after a loan application is received. This distinguishes RESPA as the correct response for this particular question.