Which document must accompany a mortgage application for compliance?

The Loan Estimate is a crucial document that must accompany a mortgage application for compliance purposes. It provides borrowers with a clear and concise summary of the key terms and costs associated with the mortgage, allowing them to make informed decisions. The Loan Estimate outlines the interest rate, monthly payments, and estimated closing costs. It is designed to ensure that consumers have the necessary information to compare different loan offers and understand the financial obligations they will incur.

The inclusion of the Loan Estimate as a required document reflects the commitment of the CFPB to protect consumers and promote transparency in the mortgage lending process. By mandating this document, the CFPB aims to facilitate informed decision-making by providing clear information upfront, which ultimately enhances consumer understanding and comparison between different mortgage options.