Nationwide Mortgage Licensing System and Registry (NMLS) 20 Hour SAFE Act Practice Test

The correct duration for which the settlement charges listed on a Loan Estimate must be available to consumers is 10 business days. This regulation is part of the Truth in Lending Act (TILA) and helps ensure that borrowers have adequate time to review the details of their potential mortgage before committing to the loan.

A Loan Estimate provides important information about the loan terms, including the estimated closing costs and other settlement charges. Making these estimates available for 10 business days allows consumers to shop around, compare offers from different lenders, and make informed decisions without feeling rushed. This period encourages transparency in the mortgage process and helps protect consumers by ensuring they understand the costs associated with their loan options.

Understanding that settlement charge estimates need to be consistent and reliable over this 10-day period is crucial to maintaining compliance with federal regulations. The choices provided, such as 5, 15, or 30 business days, do not reflect the specific timeframe established for the availability of these crucial documents.