When must a mortgage broker provide a mortgage broker fee agreement?

A mortgage broker is required to provide a mortgage broker fee agreement within three business days of receiving a loan application. This timeframe is established to ensure that borrowers have a clear understanding of any fees associated with the mortgage broker's services before committing to the loan process. It allows borrowers to review the terms, ask questions, and make informed decisions about whether to proceed with the broker or explore other options.

Providing the fee agreement promptly protects consumers by promoting transparency in the lending process. It helps borrowers understand the costs involved and ensures that they can weigh the broker's fees against potential lenders without feeling rushed. This requirement aligns with consumer protection regulations that aim to provide borrowers with all necessary information so they can make educated financial decisions.

The other options reflect timelines that either do not comply with regulatory requirements or suggest actions that do not align with the process of informing the borrower. For instance, providing the agreement on the loan closing date does not allow adequate time for the borrower to review the fees, which could lead to misunderstandings or dissatisfaction.