True or False: A lender must provide a Good Faith Estimate of closing costs upon a borrower's request.

True or False: A lender must provide a Good Faith Estimate of closing costs upon a borrower's request.

• A. True
• B. False
• C. Depends on loan type
• D. Only for mortgages

Answer: (A)

The statement is true because under the Truth in Lending Act and affiliated regulations, lenders are required to provide a Good Faith Estimate (GFE) of closing costs to borrowers. This requirement exists to ensure transparency in lending practices, allowing borrowers to understand the financial obligations associated with their loans. The GFE must be issued in a timely manner when a borrower requests it, typically at the application stage or when a loan estimate is needed. This information empowers borrowers to make informed decisions and compare different offers from various lenders, ultimately fostering a more trustworthy lending environment. While there are distinctions in how these estimates may apply to different types of loans, the overarching requirement for lenders to provide a GFE upon request remains consistent.

The statement is true because under the Truth in Lending Act and affiliated regulations, lenders are required to provide a Good Faith Estimate (GFE) of closing costs to borrowers. This requirement exists to ensure transparency in lending practices, allowing borrowers to understand the financial obligations associated with their loans.

The GFE must be issued in a timely manner when a borrower requests it, typically at the application stage or when a loan estimate is needed. This information empowers borrowers to make informed decisions and compare different offers from various lenders, ultimately fostering a more trustworthy lending environment.

While there are distinctions in how these estimates may apply to different types of loans, the overarching requirement for lenders to provide a GFE upon request remains consistent.