NMLS Uniform State Test (UST) 2025 – 400 Free Practice Questions to Pass the Mortgage Exam

Question: 1 / 400

What is another name for the Mortgage Disclosure Improvement Act?

15/30 Rule

5/3/3 Rule

3/7/3 Rule

The Mortgage Disclosure Improvement Act (MDIA) focuses on enhancing transparency in the mortgage loan process, particularly regarding the timing and content of disclosures provided to consumers. The term "3/7/3 Rule" refers to the specific timing requirements established by the MDIA for providing disclosures to borrowers.

Under this rule, lenders must provide the Good Faith Estimate and Truth in Lending disclosures within three business days of receiving a loan application. Additionally, borrowers must receive a revised and completed Loan Estimate at least seven business days prior to the closing of the mortgage loan. This ensures that borrowers have adequate time to review the necessary information before making a final decision.

Therefore, the reference to "3/7/3" highlights the critical timeframes imposed by the MDIA to protect consumers, making it the correct answer.

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2/1/1 Rule

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