A licensee that acts in good faith but fails to comply with the HLPA must notify the borrower within how many days of closing?

The correct answer is 30 days. Under the Home Loan Protection Act (HLPA), if a licensee acts in good faith but does not comply with certain provisions of the law regarding mortgage transactions, they are required to notify the borrower of this failure within 30 days following the closing of the loan. This requirement is in place to ensure transparency and provide the borrower with timely information regarding any compliance issues that may affect their loan terms or their rights.

This notification period is essential for maintaining trust in the lender-borrower relationship, as it informs borrowers of their rights and any issues that may arise post-closing. Adequate communication helps borrowers make informed decisions regarding their financial obligations and any potential remedies they may seek. Understanding this timeline is critical for licensees to remain compliant with Rhode Island mortgage law and protect both their interests and those of their clients.