Within _____ business days after receipt of a loan application, a lender must provide a borrower with a notice about loan fees.

The correct choice is three business days. Under the Real Estate Settlement Procedures Act (RESPA) and related regulations, lenders are required to provide borrowers with a Loan Estimate, which includes important information about loan terms and estimated closing costs, including fees associated with the loan. This notice must be delivered within three business days after the lender receives the loan application.

This requirement is in place to ensure that borrowers have a clear understanding of the costs associated with their mortgage obligations early in the loan process. The three-day timeline allows borrowers time to review their options and make informed decisions, which is crucial for such a significant financial commitment.

Understanding this timeframe helps ensure compliance with RESPA and protects consumers by providing a foundational awareness of loan fees and terms before they proceed further with their mortgage application.