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A customer wants an estimate of closing costs for the purchase of a $300,000 property...

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A customer wants an estimate of closing costs for the purchase of a $300,000 property with a 20% down payment. Although she has provided the other five pieces of information, a loan application, per Regulation X, has not been triggered because she has not yet found a property to purchase. Which of the following responses best describes what should be done, if anything, according to Regulation Z when a written cost estimate is given prior to a Loan Estimate?

A.

Use a fictitious address in order to trigger a loan application so that a Loan Estimate can be provided

B.

Regulation Z does not allow a creditor to provide any estimate of costs until a complete loan application has been made by the borrower.

C.

Provide an estimate with the following in 12-point font: "This is not an Official Consumer Financial Protection Board (CFPB) Loan Estimate."

D.

Provide an estimate with the words: "Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan."

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