What does "within three business days of application" refer to?

The phrase "within three business days of application" refers to the time frame in which a financial institution must provide certain disclosures, such as the Loan Estimate, to a borrower after they apply for a mortgage. Business days are defined as any day when financial institutions, such as banks and credit unions, are operational and open for business, which typically includes not just standard weekdays, but also may include Saturdays, depending on the institution's specific operating schedule.

This understanding aligns with the importance of timely disclosures in the mortgage process. It ensures that borrowers receive important information about their loan options and costs within a defined period, promoting transparency and informed decision-making.

Other options may only partially capture the definition of "business days." For instance, excluding public holidays or limiting it to weekdays does not fully encompass the operational days of all financial institutions, and defining it as a maximum of three calendar days undermines the clarity and specificity intended by the term “business days.” Thus, recognizing that "business days" include all operational days of the institution is crucial for compliance and consumer understanding in the mortgage lending process.