When is the Preferred Providers List supposed to be delivered to the borrower?

The Preferred Providers List is required to be delivered to the borrower within 3 business days of receiving a loan application. This requirement is outlined in the Real Estate Settlement Procedures Act (RESPA), which aims to ensure borrowers are informed about their options regarding settlement services and can make educated choices. Delivering the list within this time frame allows borrowers to evaluate the preferred providers and ask any questions they may have before proceeding further in the loan process. This promotes transparency and fair practices in mortgage lending.

The other options do not align with the statutory requirements: delivering the list within 2 business days would not satisfy the minimum time frame mandated by RESPA, while 5 business days exceeds the required timeline. Providing the list at closing would not enable borrowers to take full advantage of their ability to assess their choices prior to making financial commitments. Therefore, the correct timeframe for delivering the Preferred Providers List is 3 business days.