Which borrower disclosure is NOT required within three business days of taking an application?

The correct response is that a HUD-1 is not required within three business days of taking a loan application. The HUD-1 Settlement Statement is a disclosure of the actual costs of settlement, which is provided at the closing of the mortgage loan transaction. It details the debits and credits related to the transaction, allowing the borrower to see how funds are allocated.

In contrast, the other disclosures listed are part of the regulatory requirements aimed at ensuring transparency and protecting consumers during the mortgage application process. For instance, the Special Information booklet is designed to inform borrowers about adjustable-rate mortgages and must be provided early in the process. Similarly, the Mortgage Servicing Disclosure informs borrowers about the potential transfer of their mortgage servicing rights. The Good Faith Estimate (GFE) and the list of lender-required settlement service providers must also be provided shortly after the application to give borrowers an understanding of the expected costs and services associated with the loan.

These disclosures are critical in helping borrowers make informed decisions and understand their rights and responsibilities from the outset of the loan process, which is why they are mandated within the specified timeframe.