Federal Mortgage Law · 24% of the SAFE examhard
Correct answer: Within three business days of the borrower's formal application for the permanent financing, and at least seven business days before permanent loan consummation
When a lender elects to use two separate disclosure sets for a construction-to-permanent loan, each phase is treated as a separate transaction with its own full TRID timeline. For the permanent phase, the Loan Estimate must be delivered within three business days of receiving the permanent phase application, and—like any Loan Estimate—consummation of the permanent loan cannot occur earlier than seven business days after the LE is delivered (absent a waiver). "The permanent phase LE must be issued simultaneously..." confuses the LE timing with CD timing. "s formal application for the permanent financing, an..." incorrectly ties the permanent LE to the construction CD issuance date. "At least three business days before the permanent lo..." is incorrect; a separate Loan Estimate is required for the permanent phase when the two-set approach is used.
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