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Within how many business days must creditors notify the applicant of their right to receive appraisals after a complete application for credit secured by a first lien?
Three
Five
Seven
Ten
The correct answer is: Three
After a complete application for credit secured by a first lien, creditors are required by regulation to notify the applicant of their right to receive appraisals within three business days. This requirement is part of the Truth in Lending Act (TILA) and is designed to ensure that applicants are informed of their rights regarding the appraisal process in a timely manner. This notification is crucial as it gives applicants clear expectations about their entitlement to receive copies of the appraisal reports used in the underwriting process, enabling them to be more involved in their loan application. Understanding this timeline is important for both lenders and borrowers to comply with regulations and safeguard consumer rights.